Cognoscenti Group quoted in South China Morning Post
Article: A rapid increase in China’s crude oil refinery capacity will see it dominate exports in the Asia-Pacific region, particularly to Australia where there are concerns of a vulnerability in the supply chain, analysts say.
Chinese exports of refined oil products to Australia rose from a few thousand tonnes before 2011 to nearly 300,000 tonnes at the end of last year, according to figures from China customs. And given the announced closure of two of Australia’s last four refineries, its reliance on imports is expected to continue on that trajectory.
“The reason we see China as the main potential import source is the country’s rapid increase in refinery capacity combined with a slower growth in domestic oil products demand in the long term,” said Julie Torgersrud, an oil markets analyst at Rystad Energy.