Chinese refining capacity for Canadian heavy oil

This paper discussed China's refining capacity in relation to exports of Canadian heavy oil. Demand for oil is increasing throughout the world, and China is expected to consume 25 per cent of the projected yearly oil supplies. Alberta currently has an estimated 174 billion barrels of recoverable bitumen, and produces 1.06 million barrels per day. Production is expected to increase to 4.5 million barrels per day by the year 2020. Currently bitumen blends are refined and diluted with naphtha and sweet synthetic crude oil. Bitumen is a challenging feedstock for refineries, and requires thermal production methods or gasification processes. Primary conversion into sour synthetic crude is typically followed by hydrocracking and further refining into finished petroleum products. There are currently 50 refineries in China with a 7.4 million barrel per day capacity. Coastal refineries using imported crude oil have a 4 million barrel per day capacity. New facilities are being constructed and existing plants are being upgraded in order to process heavier and more sour crude oils. However, current refining capabilities in Chinese refineries have a limited ability for resid conversion. It was concluded that while China has a refining infrastructure, only refineries on the coast will use oil sands-derived feedstocks. However, there are currently opportunities to design refineries to match future feedstocks. tabs., figs