The average annual oil demand of China is estimated to grow at 6.5% pa till 2010. By the end of the 11th Five-Year Plan period in 2010; China’s oil demand is estimated to touch 455 million tons, supported by a rise in total refining capacity exceeding 400 million tons. As per a national industrial deployment plan, ethylene production capacity in China will rise to 18 million tons by 2010. Several refineries and ethylene crackers will go stream by 2010 and are expected to run at 90-95% capacity in that year. Ethylene output in China was 9.41 million tons last year- a 24.5% jump from year ago levels.
This scenario of growing robust demand for oil refining and petrochemicals has made China a favourable investment destination, not only among State-owned giants, but also foreign investors. Sabic has invested in a petrochemicals plant in Tianjin, in partnership with Sinopec, Asia's top refiner, expected to be on stream by Q4-2008. Sabic Asia Pacific Pte Ltd plans to invest US$5 billion in a JV to set up an integrated refining and petrochemical project in Dalian, Northeast China. This complex will include a 10 mln ton refinery, a one mln ton ethylene cracker and an 800,000 ton aromatics plant. This project is subject to approval by the National Development and Reform Commission (NDRC), China's top economic planner. Among the state owned giants, CNPC and Sinopec are either planning or expanding their refining and petrochemical projects in Sichuan, Fujian provinces and Guangxi Zhuang Autonomous region.
26-Mar-07 
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