A Teapot Oil Refinery in Sanding Province, China

China's independent oil refiners will form an alliance to purchase crude, in an effort to improve their negotiating stance with suppliers and possibly soothe credit-risk concerns surrounding the little-known companies. Sixteen companies, launched the China Petroleum Purchase Federation of Independent Refineries, backed by the authorities of eastern Shandong province, the hub of China's smaller, private refineries nicknamed "teapots".