Cleaner refineries thrive in China

In China currently operates two types of refineries: Tetera 1.0 and Tetera 2.0. The latter are making progress because they cooperate with the vision of the future of the sector held by the President Xi Jinping, who protects the cleanest and most energy-efficient industries.

The new companies, known as Tetera 2.0, alluding to the first private refineries in the country, “belong to companies such as Jiangsu Eastern Shenghong and Hengli Petrochemical”, which make up “large, greener refining complexes, focused on the use of crude oil to produce plastics and chemicals instead of more polluting fuels like diesel.

According to Michal Meidan, director of the China Energy Research Program at the Oxford Institute for Energy Studies, the companies of the “Tetera 2.0” group have a different philosophy of “business and operating model” and that is why new approach that the authorities are granting some privileges such as tax benefits or permits to import oil.

The new private companies have increased in value as a result of the new approach. This is how Shenghong, which was oriented towards the production of synthetic fibers, changed its strategic vision and began and completed, last June, the installation of the largest refining tower in the country, generating a 4-fold increase in the value of its actions.

The Hengli company also increased its value 3 times more, since the construction of its first refinery, in 2018. While Bloomberg decided to build its new refineries in underserved or sparsely populated areas with the purpose of reducing pollution in cities or populated areas.

In addition, they also focused their orientation on the production of goods such as paraxylene, which is used to create articles for daily use.

M. Rodríguez

Source: actualidad.rt