China plans to increase its commercial storage for oil products by four million tonnes, a report from oil firm China National Petroleum Corp (CNPC) says today.
Currently the country can store just over 23 million tonnes of commercial crude oil, with a processing capacity of 8.42 million barrels a day. This is expected to rise to between 8.68 million or 8.88 million barrels a day.
Diesel demand alone is expected to grow a further 6% from last year, although this figure is lower than the 11.4% surge in 2010.
CNPC, the parent company of PetroChina Co, says China’s refining capacity may rise and its emergency stockpile capacity may reach 350 million barrels by 2015.
However, the report adds that progress in 2011 might be slower than previously thought because the demand for diesel is not as high as expected.
‘Refining capacity expansion will slow this year and the increase in diesel output will be limited. The diesel market will be tight,’ the report says.
The country’s diesel exports fell in November 2010 to hit its lowest figure in 22 months because there was not as much demand in the fourth quarter.