China's 2020 Refinery Output Rises to Record. Offshore Oil Production Grows

Muyu Xu and Chen Aizhu
Monday, January 18, 2021

China's refineries posted record throughput in 2020, processing 3% more crude oil than a year ago, as they took advantage of low prices and healthy margins on a quick rebound in domestic fuel demand from the coronavirus pandemic.

Annual throughput stood at 674.41 milion tonnes in 2020, or about 13.45 million barrels per day, up roughly 410,000 bpd from 2019, data from the National Bureau of Statistics showed.

December output rose 2.1% on the year to a monthly record at 60 million tonnes, or about 14.13 million bpd, a touch below the daily record set in November, which has one less day, at 14.2 million bpd.

"China's manufacturing sector strength climbed to levels not seen in years," said Seng Yick Tee, a senior director at SIA Energy.

"The economic acceleration boosted by investments, merchandise exports and domestic consumption all contributed to record crude runs in December and the whole of 2020."

Refineries slashed operations from February through April amid widespread lockdowns nationwide to rein in the virus, but operations rebounded from May, after China largely contained it. Plants raised operation to peak rates through the rest of 2020.

The rebound was also bolstered by expanded capacities at state-run refiners and full operations at large private refiners Hengli Petrochemical and Zhejiang Petrochemical Corp.

Zhejiang started its third 200,000 bpd crude unit in November, becoming China's single-largest oil processor.

Independent plants in the eastern province of Shandong that account for nearly a fifth of national capacity have raised throughput since April, operating at their highest levels since they first became importers of crude in 2016, says Sublime China Information.

While a decline in vehicle sales dragged on gasoline demand, the booming trucking business and construction gave diesel an unexpected boost.

China's crude oil production gained 1.6% last year to 194.92 million tonnes, equivalent to 3.89 million bpd, the data showed.

Although marginal, this figure represents a hard-won increase as companies scaled back capital spending amid lower oil prices and as reserves at top onshore producing fields such as Daqing and Shengli were quickly depleted.

Offshore oil and gas giant CNOOC Ltd accounted for most of the increase, pumping about an extra 2.4 million tonnes, a top executive of China National Offshore Oil Company said in January.

Natural gas output rose 13.7% in December from a year ago to a record high of 18.7 billion cubic meters, to meet surging heating demand as cold spells grip large areas of the country.

Total 2020 output was 188.8 bcm, up 9.8% from 2019, in one of the swiftest annual expansions since 2014, as companies prioritized gas drilling in Beijing's long-term drive to boost use of a fuel that emits half the carbon dioxide of coal.

(1 tonne = 7.3 barrels for crude conversion)

(Reporting by Muyu Xu in Beijing and Chen Aizhu in Singapore; Editing by Michael Perry and Clarence Fernandez)

Categories: Energy Activity Production Asia

Related Stories

Petronas Enlists MISC for FPU Job at Gas Field Offshore Brunei

Japan’s JERA Signs First Long-Term LNG Deal with India’s Torrent Power

Eni Expands Asian Footprint with Long-Term LNG Contract in Thailand

Finder Energy Buys Petrojarl I FPSO for Timor-Leste Oil and Gas Projects

Mubadala Energy, PLN Energy Primer Team Up for Andaman Sea Gas Supply

Blackford Dolphin Semi-Sub to Keep Drilling Offshore India

MODEC Forms Dedicated Mooring Solutions Unit

Seatrium Maintains $12.8B Order Book on Renewables and FPSO Progress

Vietsovpetro Brings BK-24 Oil Platform Online Two Months Early

Brownfield Output Decline Accelerates, says IEA

Current News

Eni Makes Significant Gas Discovery Offshore Indonesia

Petronas Enlists MISC for FPU Job at Gas Field Offshore Brunei

Japan’s JERA Signs First Long-Term LNG Deal with India’s Torrent Power

India's ONGC Set to Retain 20% stake in Russia's Sakhalin-1 Project

Harbour Energy to Sell Stakes in Indonesian Assets to Prime Group for $215M

Eni Expands Asian Footprint with Long-Term LNG Contract in Thailand

Finder Energy Buys Petrojarl I FPSO for Timor-Leste Oil and Gas Projects

CNOOC Puts New South China Sea Development Into Production Mode

ADES Nets $63M Contract for Compact Driller Jack-Up off Brunei

Mubadala Energy, PLN Energy Primer Team Up for Andaman Sea Gas Supply

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com