19 June 2008 06:33 [Source: ICIS news]
KUALA LUMPUR (ICIS news)--China’s base oil imports are expected to rise 50% in 2008 as a result of strong demand driven by the Olympics as well as tight domestic supply, said Shen Ping, General Manager, C1 energy on Thursday.
Speaking at the 2nd ICIS Asian Base Oils and Lubricants Conference, Shen said, "The 2008 import boom was because of tight domestic supply," explaining that there was a diesel and gas oil shortage, which led to a sacrifice of base oil production.
"As for the Olympics, construction is completed by now, but the Olympics will also boost transportation and tourism," Shen said.
China imported 1,153m tonnes of base oil in 2007, up 6.4%, but a growth rate on imports of 50.1% was already in evidence during the January-April period of this year, Shen added.
China base oil consumption was up 14.4% in 2007, and is expected to show a similar rate of growth in 2008.
However, consumption growth in the country was expected to slow down in 2009 at around 10%, stabilising at around 7% for the following two years.
Similarly, China’s base oil import growth is expected to slow down in 2009 after CNOOC’s Huizhou Refinery starts its commercial operation. The growth forecast is 21.2% in 2009, stabilising at around 15% in 2010 and 2011, Shen added.
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