Dongming signs crude terminal deal

China

RIZHAO, March 3, 2017 – ShanDong Dongming Petrochemical Group, the largest independent refiner in China, has signed a deal for the construction of a USD 566-million terminal in the port city of Rizhao, international media reported on Friday.

The group is to own a 24% stake in the project, while CEFC China Energy will take 25% and Rizhao Port Authorities will take the remaining 51%, Reuters reported. The port is connected via a 10-million tpy pipeline to Heze city, where the group operates a 240,000-bopd refinery.

“With Qingdao port nearly saturated, Rizhao stands out with its ideal location, with easy access to teapots [independent refineries] to the north and close also to Lianyungang, one of China’s planned future petrochemical hubs to the south,” a CEFC executive told the agency, requesting anonymity.