Forecast is for slower expansion of China's oil refining capacity

Between 2013 and 2015, a significant number of oil refineries are expected to come on stream in China. Last year, China’s oil refining capacity expanded by 26.5 million metric tons, which was considerably less than the 43.8 million ton capacity expansion in 2010. In 2012, China’s oil refining capacity is expected to increase by 30 million metric tons, which is higher than last year, but still way below two years’ ago’s figure. That’s because oil product demand is expected to rise at a slower pace in the coming two years due to certain government policies which could dampen demand, as well as high oil prices. In addition, alternatives, such as natural gas and ethanol will start to gain a larger market share, research shows. Gasoline demand is expected to grow an average annual rate of seven percent between 2011 and 2015. Diesel fuel demand, which will be affected by economic restructuring, will grow at less than half the growth rate in 2010 of 12% to 5% between 2011 and 2015. Jet fuel demand will grow at an average annual rate of 8% due to increasing air travel as its population becomes more affluent. (December 15, 2011)