Shandong Shipping has announced that it has signed an oil shipping letter of intent (LOI) with Shandong Dongming Petrochemical.
Under the LOI, Shandong Shipping will transport imported crude oil for Dongming Petrochemical.
Dongming Petrochemical won government approval for direct imports of crude in 2015, as part of the energy reforms in China, to boost private participation in the sector, which was long dominated by state oil giants.
The company has been given an annual import quota of 7.5m tonnes to help supply its refinery of 15m tonnes capacity in Shandong.
Dongming Petrochemical, known as one of China’s “teapot” refineries, also signed a long-term crude oil supply agreement with oil major BP in November 2015.
