According to the latest reports, the likes of Sinopec Corp (and parent Sinopec Group), PetroChina and CNOOC are planning to add around 80.5 million tonnes per year to the country's refining capacity by 2008.

According to Chen Ge, a spokesperson from Sinopec Corp and its secretary to the Board of Directors, "We are speeding up refinery expansions because of strong oil demand driven by economic growth and a lingering electricity shortage."

Sources in China have said that the Sinopec Group - and, therefore, Sinopec Corp - are leading the charge to increase refinery capacity. Its rival, PetroChina, is said to be concentrating on upgrading secondary units and the mainly offshore-centric CNOOC is awaiting approval from the Chinese government to construct a 12 million tonnes per annum refinery in Huizhou.

The Sinopec Group controls 55% of the domestic refining market and has two greenfield refineries in the pipeline - a 10 million tonnes per year refinery in Qingdao and an eight million tonnes per annum plant in Hainan - but had previously encountered a few technical hiccups whilst pursuing plans to construct them.

Sinopec, PetroChina and CNOOC currently account for up to 90% of China's national refining capacity. That is roughly around about 270 million to 290 million tonnes per annum or around 5.4 million to 5.8 million barrels of oil per day.