China refined record oil volumes in 2009 as economy recovers
China, the world's second-largest energy user, refined a record volume of crude oil last year as a recovering economy
increased demand for fuels.
Oil processing rose 7.9 % to 374.6 mm tons, or 7.5 mm bpd, said China Mainland Marketing Research, which compiles
data for the government. China also refined a record 34.6 mm tons in December, up 25 % from a year earlier and
topping the previous high in November.
China Petroleum & Chemical Corp. processed more crude last year while China National Petroleum Corp., the parent
of PetroChina, boosted overseas production as manufacturing and vehicle sales spurred energy consumption. China,
which expanded at the fastest pace since 2007 in the fourth quarter, will grow four times more quickly than the US
this year, the United Nations said in December last year.
"Refining volumes this year will definitely rise further because fuel sales will get better as the economy continues
to improve," Qiu Xiaofeng, an oil analyst with China Merchants Securities, said.
The Chinese economy expanded 10.7 % in the fourth quarter as the nation's $ 586 bn stimulus program and record bank
loans lifted industrial production. Chinese refineries, with an annual processing capacity of about 510 mm tons, may
increase volumes to 400 mm tons this year, according to China Petrochemical Corp. on Jan. 19. China Petrochemical,
the parent of China Petroleum, is Asia's largest refiner.
Twenty-one refineries increased their operating rates to an average of 81.1 % as of Jan. 7 from 77.9 % two weeks
earlier, the Shanghai-based commodities researcher CBI China said on Jan. 8.
Rising fuel output
Last year, China's gasoline production gained 13 % to 71.9 mm tons as the country overtook the US as the world's
largest auto market. Gasoline output rose 12.3 % to 6.48 mm tons in December.
Kerosene output surged 27 % to 14.8 mm tons in 2009 and increased 52 % to 1.37 mm tons in December last year.
Diesel production climbed 6 % to 141.3 mm tons in 2009 and rose 30 % to 13.2 mm tons in December.
Natural gas output rose 7.7 % to 83 bn cm last year and increased 8 % to 7.36 bn cm in December.
