The costs of competition in China’s oil market
The business models of refining incumbents face disruption from integrated new entrants
Oil market watchers are used to thinking about China as a downstream market—dependent on imports to meet three-quarters of its crude requirements and as a massive market for transport fuels gasoline, diesel and jet. To the extent that we tend to be aware of China as the producer of nearly a third of global manufacturing output, it is usually through indirect association, where a higher PMI might signal stronger demand for diesel or naphtha. But a new generation of mega-refineries coming onstream in China is putting these two worlds on a collision course. New entrants The quest for upstream integration lured private sector textile producers Rongsheng and Hengli into China’s refining sector. H
Also in this section
17 May 2024
The latest drought crisis is passing, but longer-term solutions are in motion, explains Panama Canal Authority Administrator Ricaurte Vasquez Morales
16 May 2024
Flat oil growth in 2024 highlights mounting industry problems
15 May 2024
Five years ago, Uzbekistan turned to a private company called Saneg to reverse the fortunes of its oil industry. Results so far are encouraging, and according to CEO Tulkin Yusupov, further progress is on the way
14 May 2024
But there is still plenty of appetite for the country’s LNG in the Asia-Pacific region