10:54, December 03, 2005

China may import less crude oil next year than this year, remaining at the level of last year, said a senior official with the China Petroleum and Chemical Industry Association (CPCIA), China's major petroleum industry association, Friday.

Zhou Zhuye, secretary-general of the CPCIA said at the 2nd Sino-Russo-Kazakh Oil Forum held here that according to estimates made by the CPCIA, China's crude oil demand may reach 300 million tons with domestic output reaching approximately 180 million tons.

China may then import 120 million tons of crude oil in 2006 and nearly 60 percent of its crude oil demand could be met by domestic supply, he said.

China imported 94.23 million tons of crude oil during the first nine months of this year, up 4 percent year on year with the growth rate down by 30.4 percentage points from a year ago.

The import volume of refined products is 23.24 million tons, 16.4 percent down year on year with the growth rate being 45 percentage points lower than a year ago.

The CPCIA predicts that China's demand for crude oil may reach 330 million tons in 2010.

The domestic output may still remain at the capacity of 180 million tons so the import may reach 150 million tons by then, accounting for 54.5 percent of the country's total demand, said Zhou.

China witnessed its crude oil import volume reach 123 million tons in 2004 with its import dependency rising to over 40 percent. The net import volume of that year was 117 million tons.

The estimates were made on the analysis of the whole situation of the market, new policy and industry trends and future projects, said Zhou,

Established in 2001, the CPCIA is the largest petroleum and chemical association of the country. Boasting 312 registered members, the association covers over 80 percent of Chinese enterprises and institutions.

Source: Xinhua