China expands refining sector to handle booming oil demand

China's refining sector is in the midst of a major expansion and reorganization in response to booming domestic demand for petroleum products. Plans call for hiking crude processing capacity to 3.9 million b/d in 1995 from the current 3.085 million b/d. Much of that 26% increase will come where the products demand growth is the strongest: China's coastal provinces, notably those in the southeast. Despite the demand surge, China's refineries operated at only 74% of capacity in 1991, and projections for 1992 weren't much better. Domestic crude supply is limited because of Beijing's insistence on maintaining crude export levels, a major source of hard currency foreign exchange. The paper discusses the superheated demand; exports and imports; the refining infrastructure; the Shenzhen refinery; Hong Kong demand; southeast coast demand; 1993 plans; and foreign investment