Eric Watkins
Senior Correspondent
LOS ANGELES, Sept. 5 -- China Petrochemical Corp. (Sinopec) and China National Petroleum Corp. (CNPC) are expanding their refining facilities in order to ease the country's tight oil supply, according to media reports.
China's eobserver.com said Sinopec is scheduled to add and enlarge some 20 refineries with 10 million ton/year production capacity in the next 2-3 years, while CNPC plans to set up 10 refineries, each also having a production capacity of 10 million tons/year.
The financial daily said with completion of the 30 plants, China will have to import more oil because the country's current output of 200 million tons of crude has reached its peak. Now, it said, 50% of China's domestic crude oil consumption relies on imports.
Eobserver.com said Sinopec Group's planned refineries will be built in South and East China, especially in the relatively developed southern areas, where "the strong economic engines are in urgent need of more energy."
It said CNPC will mainly set up its new plants in West China and Northeast China, with plans calling for facilities in Daqing, Fushun, Jinzhou, Huludao, Dalian, Lanzhou, and Xinjiang.
Contact Eric Watkins at [email protected].
