China to allow more refiners to import crude oil

(ECNS) -- China's top economic planning body has introduced new guidelines allowing smaller refineries to import crude oil amidst efforts to upgrade the oil industry, which is currently dominated by big state-owned firms.

Independent oil refinery businesses can import oil if they meet new technical and environmental standards, says a notice posted by the National Development and Reform Commission (NDRC) on its website ndrc.gov.cn.

The notice also observes that some regions have expanded or created new refining firms in recent years without approval, most of which were small scale and of a low technical standard, seriously affecting the optimization of the oil industry's structure.

To qualify under the new rules, firms must have at least one crude distillation unit with an annual processing capacity above 2 million tons, import oil in amounts no greater than their total processing capability, and not resell the imported oil. 

China will also enhance both the role of the market and its supervision mechanisms to help solve supply problems of regional refineries and to eliminate outdated, polluting industrial plants.

New oil companies will be put under strict supervision in terms of technology standards, product quality, taxation, energy consumption and environmental protection.

Companies will also be accreditated to ensure compliance with the law, fair competition, and structural optimization of the economy.