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China's crude oil imports may rise 10.3% in 2007: report

(Marchwatch, March 08, 2007)

China's 2007 crude oil imports are expected to rise 10.3% to 160 million metric tons, equivalent to 3.2 million barrels a day, said the China Petrochemical News Thursday, citing officials from China Petrochemical Corp., or Sinopec Group.

The projected rise would mean another double-digit growth for China's crude imports after last year's 14.4% expansion.

The strong increase in crude imports is due to China's expanding refinery capacity and slow domestic crude output growth, said the news Web site, which is backed by Sinopec Group, the country's largest refiner.

In 2006, China's overall refinery capacity grew 6.3% while domestic crude output rose merely 1.7%.

China's crude demand may rise further if Sinopec's 200,800-barrel-a-day refinery in Qingdao city, Shandong province, starts operations in the second half of this year, it said.

The country's refining capacity totaled 6.16 million barrels a day last year.
Sinopec and China National Petroleum Corp. (CNPC.YY), the nation's second-largest refiner, will likely add a combined 2 million barrels a day in refining capacity by 2010.

China National Offshore Oil Corp., or CNOOC, and China National Chemicals Import & Export Corp., or Sinochem, the country's third- and fourth-largest oil companies, are also actively expanding their presence in the refining sector and may add a total refining capacity of 2.8 million barrels a day by 2010, according to the news Web site.

source:Marketwatch