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China to curb investment in smaller refining units
(Reuters)
Updated: 2005-12-21 15:48
China is curbing investment in smaller-scale refining and petrochemical plants to tackle the risk of overcapacity in its energy sector, the country's top economic planning agency said in a document released Wednesday.
Asia's top refiner, Sinopec Corp. , said in November it planned to slow down investment in new capacity, which fits with Beijing's plan, but that contrasts with the trend in most other countries where governments, nervous about high prices, are exhorting big companies to step up refining investment.
The move leaves the world's second-largest oil consumer trying to strike a difficult balance between its desire to keep a low profile in jittery markets and the risk of tighter global supply.
Also on the list for restricted investment are several units key to gasoline production, including fluid catalytic crackers (FCC) with capacity under 500,000 tpy and continuous reformers with capacity below 400,000 tpy.
Delayed coking units under 800,000 tpy, hydrocracking units that process under 800,000 tpy, and polyethylene units with capacity under 200,000 tpy are also being restricted.
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