China Increases Oil Refining And Import
China is increasing its refining and importing oil despite limited domestic demand. Oil supplies to the country are growing despite reports of full filling of oil storage facilities. China is ahead of the United States in terms of primary oil refining volumes. This year, the export of Chinese petroleum products is expected to increase by more than a third.
In March, primary oil refining at Chinese refineries reached 19.7% more than in the same month a year earlier. The significant increase in refining is due to the recovery of the Chinese economy after the coronavirus pandemic and the accumulation of reserves of petroleum products, primarily motor fuel, ahead of the refinery repair season.
China is constantly increasing its refining capacity in order to meet its own needs not only for oil products, but also for petrochemical products. In terms of primary oil refining volumes, China at the end of last year surpassed the United States, where refineries significantly reduced production during the coronavirus pandemic. Moreover, China is striving to become a leader in the export of petroleum products to neighboring countries.
In contrast to petroleum products, the consumption of petrochemical products in China increased during the coronavirus pandemic due to the growing demand for medical supplies. In 2020, the consumption of petrochemical products increased by 4.6% compared to the previous year. The growth of petrochemical capacities will continue in 2022 and subsequent years.