The shift of refineries from fuel-oriented to fuel-chemical oriented models has become a consensus
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As a basic fuel, diesel has been widely used in production and transportation during periods of rapid industrial development, playing an important role in the growth of the national economy. However, affected by changes in the domestic oil consumption market, diesel consumption has reached its peak. The ratio of diesel to gasoline consumption in China’s refined oil market has been declining, dropping from 1.52 in 2015 to 1.05 in 2021; it is expected to fall to around 0.98 by 2025. Demand for diesel is gradually declining, while demand for chemical products such as gasoline, aromatics, and ethylene is on the rise. Reducing diesel production has become one of the main strategies for refineries, and there is a general consensus that refineries should shift from being fuel-focused to fuel-and-chemicals focused.
This has long been an industry consensus, but transitioning from oil refining to petrochemical processing requires certain conditions; it’s not possible to do so just by deciding to do so.