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Chinese refiner says agrees three-year framework crude supply deal with BP

BP has agreed a three-year framework crude oil deal with independent Chinese refinery Shandong Tianhong Chemicals, for annual supplies of 8 million barrels from this year, an executive with the Chinese company said on Thursday.

Li Dongbo, president of Shandong Tianhong Chemicals, told Reuters the deal covers 2019 to 2021, but did not specify when supplies will start this year. Li was speaking on the sidelines of an industry conference.

BP did not immediately respond to a request for comment.

Tianhong Chemicals, located in Dongying in the eastern province of Shandong, is one of more than 40 independent refineries, sometimes known as “teapots”, that were allowed to import crude in late 2015 as part of efforts to open up China’s oil market.

Tianhong said on its website the company has an annual crude oil import quota of 4.4 million tonnes.
Source: Reuters (Reporting by Meng Meng in DONGYING; additional reporting by Florence Tan in SINGAPORE; writing by Chen Aizhu; Editing by Kenneth Maxwell and Richard Pullin)

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