2024 Domestic Refining Capacity May Touch 1 Billion Tons Mark

China becomes the world's No. 1 oil refining country in 2023

China's refining capacity hit a new high in 2023 and has surpassed the United States to become the world's No. 1 refining country, with more than 100 million tons of new capacity put in place over the past five years, and restorative consumption during the post-pandemic period boosting demand for refined products significantly. China's ten million tons and above refineries have increased to 32, total refining capacity reached 920 million tons per year.

As of the end of November 2023, there were 162 refineries in China, down 1.82% in number from 2022, but the total crude oil processing capacity was about 984 million tons/year, down 0.18% year-on-year, according to Lonza data.

In addition, the Asia-Pacific region has become and will continue to become the "leader" of the petrochemical capacity increase, by the end of 2023, the region has at least 220 active petrochemical projects. It is understood that the Middle East countries to expand downstream investment and increase petrochemical production capacity initiatives, on the one hand, thanks to the advantages of feedstock, on the other hand, thanks to geographical advantages. Saudi oil and gas giant Saudi Aramco, for example, has focused its investment in China on petrochemical plants with high chemical conversion rates. Saudi Aramco has signed cooperation agreements with Rongsheng Petrochemical, Dongfang Shenghong and Shandong Yulong Petrochemical, and also completed the acquisition of a 10% stake in Rongsheng Petrochemical in July.