The development of refinery plant has encountered the bottleneck. The productivity is decentralized and product structure is in competitive advantage insufficiency. The future development planning of the government is that: "Support a batch, transform a batch, eliminate". The enterprise will be developed toward the direction of "unified planning, unified supply, and marketing, unified logistics".

1. Fully play the role of the petroleum purchasing association to reduce the cost of crude oil procurement;
2. Integrate production with marketing; strive to develop terminal market; refining industry and marketing cooperate with each other and integrate technology and the marketing methods.
3. Product differentiation and specialization;
4. Intensive development of downstream industries and the integration of industrial parks;
5. Coordination of logistics organization;
6. Large-scale development of enterprises.
First, deepen cooperation in the form of alliance and reduce procurement costs
Crude oil cost accounts for 90% of the total cost of the enterprise, and the cost determines the operating efficiency of the enterprise. China independent refinery petroleum purchasing alliance was established in February 2016.
Members (Dongming petrochemical, HSBC petrochemical, Celestica chemical, Yatong petrochemical, LuQing petrochemical, Qirun chemical, Haiyou petrochemical, Yuan group, Hengyuan petrochemical, Xinyue combustion, Jincheng petrochemical, Shenchi chemical, Zhonghai chemical, Lanqiao petrochemical, Xinhai petrochemical,  Fengli petrochemical, Baota petrochemical, Qicheng petrochemical , Hebei Xinhai, Shouguang alliance)

Purchasing alliance has enhanced the bargaining power, reduced the adverse competition and the cost price to jointly maintain industry interests by taking advantage of the Dongming petrochemical subsidiary Pacific business holding company in Singapore as a centralized purchasing imported crude oil platform. There are currently 20 companies joining the league. The first group of members has 75 million tons of total refining capacity and an estimated 65 million tons of imported crude rights.

Second, the terminal layout, synergization and sales techniques innovation of finished products sales
1. Vigorously develop retail terminals, such as gas stations, to increase the proportion of retail sales and prevent oil retailers from continuing to "shearing the wool". Dongming petrochemical currently has nearly 200 gas stations. Beijing, Yatong, and others each have more than 100.
2. Shandong local independent refiners have formed the "D20" organization of refined oil sales, monthly organizing pricing meeting between 20 local refining enterprises to commonly adjust the product oil price of two big companies. And it has a good result.
3. Dongming, Jingbo, Changyi, Huaxing and other enterprises’ "e-commerce" has become the sales new highlights. The direct sales of Dongming petrochemical to gas station terminals accounted for 86% of the total.
Third, give full play to the specialty, the differentiation and professionalization of the products, chemical projects integration
The development of independent refiners has encountered the bottleneck. The productivity is decentralized and product structure is in competitive advantage insufficiency. They should use their own device characteristics and advantages to develop a new route of differentiation, specialization, and area construction. And they should take the development mode of integration of upstream and downstream industry.
Fourth, unified planning, transform the mode to area construction and intensive cooperative, and develop the route of deep processing.
Through reasonable planning, the integrated industrial cluster can effectively integrate resources, reduce the cost of logistics, capital, and environmental protection, and improve product competitiveness and added value.
Fifth, Unified dispatching and coordination of logistics organizations.
1.  Unified organization and scheduling of international shipping, reduce transportation price and arrange the order to port;
2. Information exchange of port terminals, unified dispatching and improvement of port efficiency;
3. Strengthen the public use of the pipeline and improve the efficiency of pipeline transport;
4. Expand warehousing and other logistics facilities to increase storage capacity;
5. Strengthen the transportation of chemical dangerous goods and improve the ability to dissolve.
Sixth, the enlargement and collectivization of enterprises' development.
The enlargement of refinery enterprises is the trend of the industry in the future. And the independent refinery is gradually becoming a large enterprise group through the business merger. China has formed about 10 super large refining enterprises.

Area	Total refining capacity (Ten thousand tons )	Annual processing capacity of major oil companies (Ten thousand tons)	the proportion of the main refineries in total refining capacity
America	90485	Valero (9300), marathon, chevron, Exxon Mobil, Phillips	70% of the top 10 refiners
Britain	6949	BP, Exxon Mobil, shell, total and Conoco	93%
Korea	14795	SK energy (4200), s-oil (3345), GS caltex (3925)	77.53%
Japan	19583.5	JX Tonen(10841), Idemitsu, show a Shell Sekiyu(5739)	84.66%
Singapore	6722.5	Exxonmobil (2962.5), shell kung fu island (2310), Singapore oil company (1450)	95.98%
Taiwan	5200	Taiwan middle oil (2500), Taiwan plastics (2700)	100.00%

We should deepen cooperation through alliances or merger and reorganization to get maximum benefits.
At the same time of strengthening industry alliance, we should promote local refineries' deeper cooperation through the merger and reorganization, equity exchange and establishment of refinery group. And we should optimize and integrate local refining enterprises in such aspects as raw material, logistics, capital, product configuration, realize the big funds, logistics, and enhance the core competitiveness and right of speech of the industry.