The Chinese government said yesterday it will shut down crude oil distillation units with capacity of less than two million metric tons per year within two years in an effort to reduce pollution, Bloomberg reported. The National Development and Reform Commission (NDRC) will restrict construction of new units with capacity of less than 10 million tons per annum. The NDRC will also limit construction of low-capacity gasoline-producing units such as catalytic crackers and cyclic reformers. The change will largely impact China’s privately owned so-called “teapot” oil-processing plants, most of which will be shut down under the new guidelines.
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