China desires its refiners to provide much less gas and extra petrochemical merchandise as its electric-vehicle growth alters the nation’s consumption of diesel and gasoline.
“We are going to advance petrochemical industries towards superb chemical industries by reducing the output of refined petroleum merchandise, rising the output of chemical merchandise, and enhancing high quality,” the Nationwide Growth and Reform Fee mentioned in its annual report back to the Nationwide Individuals’s Congress.
China’s diesel demand probably peaked in 2019, with gasoline consumption cresting in 2023, Ma Yongsheng, chairman of the nation’s prime refiner Sinopec Group, mentioned Wednesday. Nonetheless, the nation’s total oil consumption hasn’t peaked but, he mentioned, and that’s all the way down to rising demand for chemical compounds merchandise.
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Whereas most of China’s refining capability is managed by state-owned corporations like Sinopec, the nation additionally has a big contingent of unbiased crops, principally situated within the province of Shandong. These refineries are discovering themselves beneath financial strain as gas margins are squeezed and the federal government cuts again tax advantages.
Beijing has a mandate to cap whole refining capability beneath 1 billion tons a yr by this yr, from present ranges of about 960 million tons.
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