Metalnewsnet 28 May ：

China Daily reported that China, the world second largest energy consumer will increase its annual oil refining capacity by 50% between 2010 and 2015 to meet rising domestic demand.

Sinopec said in a report annual oil refining capacity is expected to reach 507.5 million tons by the end of 2010 up by 6.4% from a year earlier. That figure will be elevated to 750 million tonnes by the end of 2015. It said that the country will build three to four oil refining and petrochemical manufacturing bases in regions including the Yangtze River Delta, the Bohai Sea Rim region and the Pearl River Delta. Each base will have a refining capacity of 20 million tons and ethylene production capacity of 2 million tons.

The report said oil refining capacity owned by foreign companies will rise to 31.5 million tonnes per year or 4.2% of the country total capacity by 2015 from 10.5 million tonnes annually at present.

Analysts said the refining business, a downstream sector in the oil industry, will be one focus of international oil giants in their expansion in the country.

Mr Lin Boqiang professor, Xiamen University said "There will be more cooperation between domestic oil companies and international energy giants in the area. He said that international oil giants will pay increasing attention to development of their downstream business in China, in which their advanced technology can add to capabilities.”

In May, Sinopec started operating a CNY 34 billion petrochemical complex in Tianjin. The facility is able to refine 10 million tons of crude per year and produce 1 million tons of ethylene annually.

( from China Daily)