New York: Despite a slowing national economy brokers Poten & Partners reckon China could need an additional 96 VLCCs to meet planned increases in refinery capacity by 2018.
Chinese oil demand growth has dropped to a more controlled rate of 3.7% a year, according to the International Energy Agency.
However, China has plans to add another 4.2m barrels per day of crude refining capacity by 2018.
“The outlook for refinery capacity suggests that the appetite for VLCCs in China could grow,” Poten said in a weekly comment, adding: “The best-case tonnage demand scenario could result in 31.3% growth over the next five years.”
However, given the current prognosis for Chinese demand, the New York brokers warned that it is “questionable” whether today’s planned refining capacity will actually be built.
Chinese oil companies control about 35% of the VLCC market between spot and term charters, Poten estimated. The trade routes from West Africa and the Arabian Gulf to China are the busiest routes for Chinese spot charterers, accounting for 94% of all seaborne crude imports to the country. [01/07/13]
