China's Refining Capacity Expects to Add More Than 400,000 Barrels Per Day in 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite the surplus in domestic oil supply, China's refining capacity is expected to add more than 400,000 barrels per day (BBL/d) in 2010, which is far below the growth of about 800,000-BBL/d in 2009, according to a report issued by the National Energy Administration (NEA) at a news conference on January 22, 2010.

According to the report, China's economy is expected to see rapid growth in 2010. The report predicts that product oil consumption will rise about 4% in 2010.

Starting in the fourth quarter of 2009, the output of energy-intensive products, iron and steel, construction materials, and heavy chemical products has sharply rebounded, and the operating rate of enterprise has improved. Energy and raw-material products have restocked with the anticipation of inflation. Rebounding of heavy industry has brought potential pressure to energy supply.

In 2010, China's product oil consumption is expected to recover and grow, and motor vehicles will be the main promoters. Together with local refineries and other resources, the overall product oil market will be maintain a surplus.

NEA also disclosed in its report that installed capacity would be increased to about 960 gigawatts in 2010, and the utilization hour of power generation equipment would be slightly reduced when compared with the value in 2009.

According to the report, China's coal output will have a growth of about 5% in 2010. However, due to the rising prices in the international market, it's expected that the growth of coal import will slow down compared with the rate in 2009.

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