China’s National Development and Reform Commission (NDRC) has announced that it will cap the country’s crude oil refining capacity at 1,000 Mt/year (20 mbl/d) by 2025, in order to modernise its oil processing sector and limit CO2 emissions. In addition, the NDRC has stated that it would promote the upgrading and optimisation of existing refineries, accelerate the closure of small and outdated facilities, and limit new refinery capacities.
According to the NDRC, refineries with a capacity of 10 Mt/year or more will account for 55% of China’s processing facilities by 2025 and every new refinery will have to have a capacity of at least 10 Mt/year. Smaller and non-conform older refineries (of 2 Mt/year or less) will be closed. The NDRC will also promote energy efficiency and better carbon emission management in the refining industry by auditing facilities to look at production capacities, crude oil sources and efficiency levels. In addition, the commission will build a national information database on the sector.
China’s idea of capping its refining capacity was first mentioned in October 2021, when the country announced an action plan to reach peak carbon emissions by 2030. As of end 2022, China’s refining capacity stood at nearly 17.3 mbl/d.
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