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China to increase crude oil imports this year

BEIJING: China will increase crude oil imports to more than 40 million tonnes this year, but it will maintain a ban on the import of oil products, the China Daily reported on Monday.

China imported a record 36.61 million tonnes of crude oil in 1999, customs figures showed earlier.

To fuel the country's predicted seven percent economic growth this year, domestic oil demand would rise at least four percent, the newspaper quoted an official of the State Administration of Petroleum and Chemical Industries as saying.

The crude would come from the Middle East and Southeast Asia, it said.

In addition, China was attemping to pump more crude oil at home to alleviate the shortage, it said.

Daqing, the country's largest oil producer, was expected to keep its crude output above 50 million tonnes this year, it said.

The official predicted rapid economic growth would push China's oil demand to nearly 300 million tonnes in 10 years, the newspaper said.

However, as China could meet domestic demand for oil products, the government had decided to maintain the ban on imports, including gasoline and diesel, this year, it said.

Oil products demand was expected to be 101 million tonnes this year and the ban would help the refineries earn higher profits and oil product prices would remain stable, it said.

China banned gasoline and diesel imports in September, 1998.

The petrochemical sector reported a profit of 28 billion yuan ($3.38 billion) last year, parly attributed to the ban and strong government efforts to crack down on smuggling, the newspaper said without giving further details.-Reuters