China’s Refiners Will Have to Close Units Under New Guidelines

What’s new: China’s oil refiners will have to shut down old, inefficient operations as authorities set a cap on domestic crude processing capacity under new guidelines promoting green development of the sector.

The capacity lid of 1 billion tons a year starting in 2025 will force a reduction from this year’s 1.008 billion tons, based on a projection by commodities consultancy Sublime China Information. The industry is expected to add 27.5 million tons of capacity this year, Sublime projected, on top of 980 million tons last year, according to data compiled by Everbright Securities.