China Oil and Gas Downstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

China Oil and Gas Downstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The China oil and gas downstream market is expected to grow at a CAGR of over 4.58% during the forecast period of 2020– 2025. The taxation policies and development plans like increasing refining capacity and pipeline projects have been driving the downstream market. However, the volatile crude oil prices over the recent period and the continued switch to lower energy intensity in China and an increase in electric vehicle supplies are expected to hinder the growth of the oil and gas downstream market.

Key Highlights

• China leads the global oil refinery market, in terms of refining capacity. The region is expected to add about 3,721 million barrels per day (b/d) of new refining capacity in the next three years by adding new refineries.
• The country’s total refinery coking capacity, catalytic cracker capacity, and hydro-cracking capacity are expected to increase during the forecast period. The total coking capacity is expected to increase from 1991 mbd in 2018 to 2371 mbd in 2023.
• As of 2019, China has a total of 179 active crude oil refineries and around 12 planned and announced refineries are expected to commence operations by 2023. The top three active refineries in China, in terms of the crude distillation unit capacity, are Maoming, Zhenhai, and Huizhou with 472 mbd, 462 mbd, and 440 mbd, respectively.
• In December 2019, Russia’s Gazprom opened the “Power of Siberia” pipeline to China, to significant media and industry interest. The 8,100 kilometre long pipeline has been a substantial undertaking and will significantly impact China’s gas market, providing up to 10% of China’s entire gas supply by 2022.

Key Market TrendsRefinery Capacity Expansion is Expected to Drive the Market

• As of 2019, China has a total of 179 active crude oil refineries and around 12 planned and announced refineries are expected to commence operations by 2030.
• Energy Demand Model provides a view of individual fuel demand growth within different demand sectors, in a country.
• Strategy and planning support including fully integrated long-term scenarios with detailed supply, demand & pricing projections.
• Digital technologies are already reducing refining costs and process losses, but the modernization of the sector is moving from a strategic choice to an imperative.

Increasing Demand for Petroleum Products

• Petroleum products include gasoline, diesel fuel, jet fuel, unfinished oils, and other liquids such as fuel ethanol, blending components for gasoline, and other refinery inputs.
• China’s crude oil imports in September 2019, rose 10.8% from a year earlier as refiners ramped up output amid stable profit margins and solid fuel demand.
• In 2020, China's net exports of gasoline are expected to average 375,000 b/d in the fourth quarter, up from an average of 330,000 b/d over the first three quarters
• Therefore, factors such as increasing demand for petroleum products and the improvement in downstream infrastructure are expected to drive the downstream market.

Competitive Landscape

The China oil and gas downstream market is moderately fragmented. Some of the key players in this market include China National Petroleum Corporation, Shanghai Petrochemical Company Limited, Shell Energy (China) Limited, Chevron Corporation, Total SA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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