China's State Council has decided to increase the nation's oil refining capacity by around 18% from 2008 levels by 2011, according to reports.
This would represent an annual throughput of 405 million tonnes of crude by 2011, or 8.2 million barrels per day (bpd), up from 342 million tonnes in 2008.
That target would be achieved by the construction of two refineries in the Pearl and Yangtze Delta, each with capacity to process 400,000 bpd, Chinese sources said.
Further to that a refinery is being planned for Tianjin to receive crude oil imported from Russia via a pipeline on which construction is said to have already begun on Monday.
All three projects are slated to come on-line by 2011.
The National Energy Administration has said that imports via tankers are also expected to go up. China imported 3.5 million bpd of crude last year, while producing 3.7 million bpd, it added.
China relies on imports for 50% of its demand. Of that 50%, 80% is shipped from the Middle East and Africa.
Earlier this month, Tankerworld quoted China Shipping Development Co Ltd managing director Mao Shijia forecasting that China's overall oil demand in 2009 would increase by 0.64% year-on-year even though worldwide demand will shrink by about 1.5%.