China faces 250 mm tons of oil shortage by 2020
China may face a shortage of 250 mm tons of crude oil by 2020 as local production may meet only 44 % of demand.
China's consumption of crude oil may reach 450 mm tons by 2020, with local output at 200 mm tons, the report said,
citing Chen Geng, president of China National Petroleum Corp. The country's demand for gasoline, diesel and kerosene
may total 260 mm tons by 2020, the report said.
China's oil companies face challenges including lack of domestic crude oil stockpiles, increasing difficulties in
finding new sources of oil and the lack of new technology to boost output at its refineries, the report said. China's
refineries are now operating at 90 % of their capacities to meet the country's demand for fuels, Chen was cited as
saying.
China, the world's biggest oil consumer after the US, may consume about 6.29 mm bpd this year, an increase of 15 %,
the International Energy Agency said. The country imported 57 % more oil products in the first half of the year,
while rising prices saw the bill climb 66 % to $ 4.5 bn, according to customs figures.
Among other products, ethylene demand in China may double to 23 mm tons by 2020, Chen was cited as saying. China
would need to import 40 % of its ethylene to meet demand by then, the report said. China's natural gas output is
expected to rise to 120 bn cm by 2020, from 34 bn cm, the report said. Gas demand may rise to 200 bn cm from 30 bn
cm, it said.
Energy conservation could help resolve part of China's energy shortages, Chen was cited as saying.
