Economics
China Faces Fuel Glut as Refineries Add Capacity, CNPC Says
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China faces a fuel glut this year as new oil-refining capacity outpaces demand growth even amid a government drive to use more natural gas, according to the nation’s biggest oil and gas producer.
The nation’s crude-processing capacity will increase by 39.5 million metric tons a year to 614 million a year in 2013, while actual throughput will climb 5.4 percent to 489 million tons, China National Petroleum Corp. said in an annual report released in Beijing today. Demand for gasoline, diesel and kerosene will expand 5.8 percent to 293 million tons, it said. Crude is also turned into fuel oil and petrochemical feedstock.