Oil Refining in China
Oil refining in China
Ed chen, a strategic planner at a international oil and gas firm was assigned with the task to look for investment opportunities in the china’s refining industry and also to see whether there was any room for foreign competition or if was a local-only-game.
Downstream constraints have always been a major factor which will ease neither quickly nor cheaply”.
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Crude oil prices have continued to increase in the period 2001-2005 and according to the” Medium term oil market report”, the IEA cited a huge mismatch between the product demand growth, refinery configuration and available crude oil quality which were the main drivers for the increasing price of the crude. The more lighter end of the refined products were provided by the more complex refineries with some additional assistance from the more simpler refinery and these were buying the lighter products at a premium from the complex refineries which were in turn meeting the higher margins for the complex for processing the more sour crude.
China refining industry
China demand for the refined products especially gasoline and diesel tripled during the period 1990-2005 i.e. to 3.6 million b/d and according to IEA estimate it will increase to 9.1 million b/d in 2011. China’s refining industry was mainly dominated by two state controlled, publicly listed integrated oil and gas company- Sinopec and PetroChina. Others refinery mainly include the wholly state owned company China petrochemical corporation and CNOOC. China has nearly 70 refineries with a total capacity of 6.9 million b/d with a further addition of 1.8 million b/d by 2011.China’s old refineries were designed to process both domestic light and heavy crude due to which its mainland desulfurization was only at 7%.
China refining regulations
China refining industry was subjected to a large number of governmental regulations. The NDRC set guidance prices for many refined products and also approved many refinery projects and
Ed chen, a strategic planner at a international oil and gas firm was assigned with the task to look for investment opportunities in the china’s refining industry and also to see whether there was any room for foreign competition or if was a local-only-game.
Downstream constraints have always been a major factor which will ease neither quickly nor cheaply”.
“
Crude oil prices have continued to increase in the period 2001-2005 and according to the” Medium term oil market report”, the IEA cited a huge mismatch between the product demand growth, refinery configuration and available crude oil quality which were the main drivers for the increasing price of the crude. The more lighter end of the refined products were provided by the more complex refineries with some additional assistance from the more simpler refinery and these were buying the lighter products at a premium from the complex refineries which were in turn meeting the higher margins for the complex for processing the more sour crude.
China refining industry
China demand for the refined products especially gasoline and diesel tripled during the period 1990-2005 i.e. to 3.6 million b/d and according to IEA estimate it will increase to 9.1 million b/d in 2011. China’s refining industry was mainly dominated by two state controlled, publicly listed integrated oil and gas company- Sinopec and PetroChina. Others refinery mainly include the wholly state owned company China petrochemical corporation and CNOOC. China has nearly 70 refineries with a total capacity of 6.9 million b/d with a further addition of 1.8 million b/d by 2011.China’s old refineries were designed to process both domestic light and heavy crude due to which its mainland desulfurization was only at 7%.
China refining regulations
China refining industry was subjected to a large number of governmental regulations. The NDRC set guidance prices for many refined products and also approved many refinery projects and