Refiners' alliance eases competition

Teapots form group to cooperate on production, sales and imports

Analysts say an independent oil refiners' alliance in Shandong will help the teapot refiners enhance bargaining power and reduce vicious competition amid an excess capacity in the sector.

Several teapots in Shandong have set up a refining conglomerate recently with a planned registered capital reaching 90 billion yuan ($13.67 billion). This will combine the country's largest independent oil refineries, known as teapots, and coordinate their production, sales, crude oil imports and investment.