Singapore — Asia will have a deficit of oil products by 2025 despite the expansion of China's refining capacity in recent years, Trafigura's CEO Jeremy Weir said Friday.
"Asia Pacific remains in need to import oil products in order to meet its growing demand in 2025 as the region is short of new refining capacity," Weir said at the International Petroleum and Natural Gas 2019 conference in Zhoushan, east China.
This suggests that China's oil product surplus would find homes in the region.
Weir expects China's surplus products to peak at about 5 million b/d in 2022, while Asia Pacific, excluding China, would continue to see its product deficit widen to about 6 million b/d in 2025, according to Weir's presentation slides.
China will add 900,000 b/d of new refining capacity in 2019 and is expected to have 1.82 million b/d of new capacity in five years, S&P Global Platts data showed.
However, China's domestic demand growth slowed so far this year, leading to an increase in exports. China's net oil product export volume rose 17.9% year on year to 21.59 million mt in January-September, latest data from General Administration of Customs showed.
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