Before 2005, the primary consumers of fuel oil in China were the
transport, petroleum refining, chemicals, construction materials, and
power and heating industries. But as environmental policies tightened,
the demand declined.
From 2005 to 2012, consumption by power and heating industries
plunged. In 2012, petroleum refining and transport industries accounted
for 51% and 40% of China’s fuel oil demand, respectively.
Since 2012, due to the widespread switch to alternative and clean
energy, demand for industrial fuel oil – mostly by metallurgy and light
industries – and for fuel oil by the electricity sector has been falling.
Moreover, as independent refineries applied for and received higher
import quotas for crude oils, fuel oil consumption in the petroleum
refining industry has also shrunk significantly. However, this general
downward trend is offset somewhat in recent years by the increasing
demand due to deep processing of aromatics.
In 2019, about 69% of fuel oil consumed in China was marine
fuels used for transportation, 24% was used as raw materials for
petrochemical refining and processing, and the remaining 7% was
used for the extraction of various aromatic solvents, bitumen blending,
or as an industrial fuel (for boilers).
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