China refined oil products demand to grow more slowly through 2015

06 February 2012 10:14  [Source: ICIS news]

SINGAPORE (ICIS)--China’s demand for refined oil products will grow at a slower rate in the medium-term, partly because of the expected weakening of the world’s second biggest economy, in line with the decline in external demand, industry sources said on Monday.

The country’s Ministry of Industry and Information Technology (MIIT) said in a report that China’s demand growth for refined oil products such as diesel and gasoline, will grow at an average clip of 5.5% a year in 2011-2015 under the government's 12th five-year plan, down from the 7.8% pace recorded in the previous five years.

“China’s economic development is facing complex internal and external circumstances,” a source from MIIT said.

The Chinese economy posted its slowest growth in 2.5 years in the fourth quarter of 2011, when GDP expanded at 8.9%, with further slowdown expected this year as Europe and the US struggle with their respective financial and economies problems.

Like the rest of Asia, China is export-oriented, making it vulnerable to the troubles in West.

Energy conservation may also play a part in slowing down China’s demand for refined oil products through 2015, an industry source said.

By 2015, China’s demand for refined oil products would have reached 320m tonnes from 245m tonnes in 2010, MIIT said.

Meanwhile, China’s petrochemical industry output is expected to be valued at yuan (CNY) 1,400bn ($221.9bn) in 2015, with the average annual growth at 13%, MIIT said.

($1 = CNY 6.31)

By: Rachel Yang

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