Product oil supply in China is expected to increase with successive operations of a number of new refineries in 2008.

    China's major refining enterprises and local refineries have been endeavoring to raise their output capacity this year by adding new refining units or expanding the existing facilities, which will accordingly increase the nationwide product oil supply. Among the new refining facilities pending for operation will be Sinopec's 10-mln-t/y green field refinery in Qingdao, which is scheduled to start operation at the end of September; CNOOC's 12-mln-t/y Greenfield refinery in Huizhou in South China, which is to come on stream in November; and CNPC's Dushanzi refinery in Xinjiang, Northwest China,which will have its capacity be expanded from 6 mln t/y to 10 mln t/yand go into operation before the end of 2008.

    Besides, some local refineries with a total annual processing capacity of 90 mln tons are undergoing renovations for expanding secondary processing.

    Tian Chunrong, a senior engineer with Information Department of Sinopec, said that since the growth of demand for oil products decreased with the economic slowdown, tight supply of product oil will ease after the newly added refining capacities go into operation.

    At the same time, the refineries will face greater sales pressures.