A worker walks on an oil refinery tank of Sinopec Group in Wuhan, China. Photo: Reuters
This would make Beijing the world's largest supplier of products such as gasoline and diesel, as well as wielding the power to dictate prices.
This scenario was noted by Reuters journalist Clyde Russell in a separate analysis of the IEA report. “China’s refined product exports will be subject to quotas issued by Beijing, operating more in the interests of its domestic economy and market,” Russell wrote.
The IEA itself also recognizes China's growing role as a fuel supplier to the world.
China overtook the US to become the world’s largest refiner in 2022, but it’s not done yet. Chinese refineries are adding capacity, with a total expected to reach 19.7 million barrels per day by 2028. Of this, the IEA says more than 3 million barrels per day will be spare capacity.
This amount of spare capacity suggests that Beijing may be planning to become the world’s fuel supplier in earnest, after European and American refineries closed their facilities under pressure to phase out internal combustion engines or convert them to biofuel plants. For its part, China believes it cannot ban fossil fuel cars and switch entirely to electric vehicles.
China is not only the world’s largest oil refiner. It is also the world’s largest market for electric vehicles. The IEA predicts that by 2028, more than 155 million electric vehicles will be sold globally. The report adds that more than half of those vehicles will be in China.
China now accounts for more than half of global electric vehicle sales. But it is also building more refining capacity.
China may also be pursuing a similar strategy with wind, solar, and coal. One of the other things the country has the biggest advantage in is wind and solar power generation. Because, as government officials have said, China is going all in and not picking priorities.
Source: VNA
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