ARKANSAS, Oct 25 (Future Headlines)- China has announced a significant move to streamline its vast refinery sector by capping its crude oil primary processing capacity at 1 billion metric tons by 2025, as declared by the country’s state planning agency, the National Development and Reform Commission. This initiative comes as China’s oil refining capacity had reached 920 million metric tons per year, equivalent to 18.4 million barrels per day (bpd), in 2022. This milestone surpassed the United States, making China the world’s largest oil refining nation.
The National Development and Reform Commission’s announcement outlines strict controls on the establishment of new oil refining capacity. This measure is part of the broader strategy to optimize and upgrade existing refineries while simultaneously expediting the elimination of smaller and outdated plants. This approach underscores China’s commitment to enhancing the efficiency and environmental sustainability of its oil refining industry.
The notice specifies that refineries with a capacity of 10 million metric tons or more will constitute 55% of the total capacity by 2025. This emphasis on large-scale refineries reflects the drive toward more efficient and technologically advanced facilities that align with modern environmental and operational standards.
In addition to controlling capacity expansion and promoting large-scale refineries, China will focus on boosting energy efficiency within the oil refining sector. Moreover, there is a commitment to strengthening carbon emission management. This demonstrates China’s proactive approach to addressing environmental concerns and aligning its industrial practices with global sustainability goals.
According to data from the National Bureau of Statistics, China’s crude oil processing exhibited significant growth, totaling 554.8 million metric tons during the January to September period. This marked an increase of 11.5% compared to the same period in the previous year. The substantial growth in crude oil processing highlights China’s ongoing energy demands and its role as a key player in the global energy landscape.
China’s determination to streamline its refinery sector and optimize its oil processing capacity is a noteworthy step toward achieving greater energy efficiency and environmental sustainability. This move is in line with global efforts to transition to cleaner and more efficient energy sources. Additionally, the emphasis on large-scale refineries demonstrates China’s commitment to enhancing its industrial capabilities and aligning with contemporary standards. As a crucial player in the global energy market, China’s approach to refinery optimization carries implications for the broader energy industry, both domestically and internationally.
Writing by Sarah White