BEIJING, Dec. 13 (Xinhua) -- China’s refining sector posts increasing overcapacity threat with the country’s total refining capacity reaching 840 million tonnes by this December and expected to add 214 million tonnes more in the next three years.
Specifically, combined capacity of China’s oil and gas giant PetroChina and Sinopec reached 490 million tonnes by December, that of state-owned enterprises such as CNOOC and Sinochem reached 130 million tonnes, and that of local refineries reached 220 million tonnes, according to leading internet product oil and gas service platform 51zhaoyou.com.
There is a pressing need for supply-side reform in domestic refining and chemical industry, according to Liu Xintian, secretary general of Commodity Development and Research Center, noting that overcapacity stands as worldwide risk.
Production capacity utilization rate is only about 70 percent domestic and overseas, Liu said.
Meanwhile, experts note that the fast development of new energy industry will also cause shrinking gasoline consumption on the demand said. (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
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