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China will add nearly 100 million tons of crude oil processing capacity

In 2010, the Chinese refining industry significantly expanded its crude oil processing capacity by adding over 90 million tons, while simultaneously phasing out approximately 20 million tons of outdated refining capacity. This development was outlined in the "Special Plan for the Medium and Long-term Development of the Refining Industry," which was officially released by the National Development and Reform Commission on March 16th. The plan had previously been approved by the State Council’s executive meeting in January, marking a key step in China's strategy to modernize and optimize its refining sector. According to the plan, by that time, China aimed to establish more than 20 million tons of highly competitive crude oil processing bases, which would account for 65% of the country’s total refining capacity. The average size of refining enterprises was expected to reach 5.7 million tons, reflecting a significant improvement in scale and efficiency. This move is expected to greatly enhance the overall competitiveness of the industry and bring it closer to international standards. While the domestic refined oil market is largely self-sufficient, the industry still relies on importing certain chemical light oils to support the downstream petrochemical sector. Additionally, the plan emphasizes the need to diversify oil imports and reduce dependency on a single source. In line with this, the government also encourages the use of natural gas as an alternative to diesel in peak power plants, as well as for gas-powered vehicles and alcohol-based fuels. These initiatives are designed to gradually transform China’s energy consumption structure, promoting cleaner and more sustainable energy options.

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