China’s largest refiner, Sinopec, expects domestic demand for oil products to peak by 2025 due to COVID impacts and the rise of electric vehicles, Argus reported on Friday, citing Sinopec’s research think-tank as saying in its annual report.
China is already on track to surpass the United States as the world’s biggest oil refiner next year or the year after. Last year, refiners added some 1 million bpd to existing capacity, and there is another 1.4 million bpd of capacity under construction.
Surging Chinese oil product exports are set to put pressure on refiners elsewhere in Asia as the global refining industry is struggling with overcapacity. Refiners around the world have been announcing permanent closures of refinery capacity this year after the pandemic crushed fuel demand worldwide, and significant overcapacity still remains, the International Energy Agency (IEA) said last month.
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