Strong petroleum products demand continues to boost refining sector in China, says GlobalData

China is likely to start the operations of 42 crude oil refinery projects or 26% of the total crude oil refinery projects in Asia between 2021 to 2025 to meet the growing demand for plastics and petroleum products, says GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘Global Crude Oil Refinery Projects Outlook, 2021-2025’, reveals that out of the 42 projects, six projects are new-build and 36 represent expansions of existing projects.

In China, 22 upcoming refinery projects are in the construction stage and likely to start operations between 2021 and 2025. Feasibility and approval are the other major project stages with 12 and six projects, respectively.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, comments: “China, the world’s largest oil and gas importer, and a leading consumer, continues to witness strong growth in the refinery sector. Growing demand, especially from petrochemicals and transportation sectors, will boost the refining activity in the country.”

During 2021-2025, Yulong and Jieyang are expected to be the leading projects in terms of refining capacity in the country with 400 thousand barrels per day of capacity, each. Shandong Yulong Petrochemical Ltd is the operator as well as 100% equity holder of the Yulong project, which is expected to start operations in 2023.

The Jieyang project is expected to start operations in 2022. Petrochina Pdvsa Guandong Petrochemical Co Ltd is the operator while China National Petroleum Corp and Petroleos de Venezuela SA hold 60% and 40% of equity in the project, respectively.

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