China's oil product market to be oversupplied in 2010
Su Shulin, general manager of Sinopec Group, has forecasted an oversupply for China's product oil market in 2010
despite an increase of apparent demands.
Su made the remark in his report at an annual workshop, saying that new refining capacity from new projects and
expansion schemes is the major cause of such oversupply.
The general manger forecasted that China's apparent demand for ethylene would have a small growth in the coming year,
compared with a rapid increase of domestic ethylene production capacity. He warned that a stronger competition will
be seen in the domestic petrochemical market.
The company official also vowed to beef up upstream oil and gas exploration and development, especially to boost the
development of the natural gas business in the country.
According to the general manager, the company needs to ensure stable supply from its Puguang gas field in Sichuan and
make sure normal operation of the gas pipeline to link the gasfield with downstream users in Yangtze River
Delta.
Qinghai LNG terminal and pipeline network construction was also emphasized in the general manager's report.
