According to a Chinese oil industry official, in 2022 China’s oil refining capacity overtook the United State’s to become the world’s largest. However he conceded that its overall production continued to lag behind the US due to diminished utilization rates.

According to Fu Xiangsheng, vice president of the China Petroleum and Chemical Industry Association, China’s total refining capacity expanded to 920 million tons per year, which is equivalent to 18.4 million barrels per day (bpd).

By comparison, US refining capacity, as of December was 17.6 million bpd, according to data from the International Energy Agency’s most recent oil market report.

China has been expanding its refineries, with state-run PetroChina, as well as large private firms such as Zhejiang Rongsheng group and Jiangsu Shenghong Petrochemical leading the way, mostly due to a supply gap in petrochemicals within the country generated by its manufacturing sector, rather than a higher demand for transportation fuels.

Total refined products output in China was under 700 million tons (5.1 billion barrels), with the average plant utilization rate sitting at around 70%, according to the association. That is compared to the United State’s total refined products output of over 800 million tons (5.83 billion barrels), with average utilization at 90%.

China’s 32 refineries have a capacity of at least 200,000 bpd each according to association data. In his statement to reporters, Fu Xiangsheng noted the launch of a new facility built in Jieyang in Guangdong province by PetroChina as an example of how swiftly China is expanding its capacity.