Qicheng Chinese teapot and Qirun buy crude oil for newly acquired plants, said trading sources

Chinese independent refineries Qicheng Petrochemical and Qirun Petrochemical have bought crude oil from Brazil and West Africa for the factory they just obtained in the East Shandong Province, four trade sources said.

The Penitapi, also known as a teapot, obtained a bankrupt refinery from the Sinochem group managed by the government that was closed since last year, Reuters reported last month.

Bangkut Factory – Zhenghe and Petrochemical Huaxing groups – allocated raw import quota of around 26 million barrels for the remaining 2025 after sales.

Qicheng bought two million barrels of Brazilian tupi crude oil for Zhenghe for November shipping at a price of $ 5 over the January Ice Brent contract. The cargo was sold by Unipec through Zhenhua and Cnooc oil, said the source.

Qirun bought two million barrels from Angola Mostarda and Gabonese Mandji Crude for Huaxing for November delivery, three sources said. The oil was sold by Totsa, the arms of the French Energy Ttenergy Ttenergies trading, through CNOOC, they added.

The Shandong government has asked Qicheng and Qirun to restart the two factories in September to support the growth of local industries, people said.

However, it is still unclear when the Zhenghe and Huaxing refineries will continue the operation, given the calm refining margin and weak fuel demand in China, they added.

Qicheng and Qirun did not immediately respond to requests for comments.
Source: Reuters