ABSTRACT
The global oil refining industry stands at a pivotal juncture, transitioning from traditional fuel-focused operations to petrochemical-driven strategies. In 2023, the industry boasted a global refining capacity of 103.5 million barrels per day across 825 active refineries, reshaping its priorities to align with emerging market demands. Over 30% of refineries now integrate petrochemical production, leveraging economies of scale and operational synergies.
China and the GCC countries exemplify distinct yet complementary approaches to this transition. China emphasizes self-sufficiency in petrochemicals, driving significant investments in integrated refining and petrochemical complexes. In contrast, the GCC countries pursue economic diversification through refining and petrochemical expansions both domestically and internationally, alongside investments in advanced technologies such as crude-to-chemical (COTC) processes and carbon capture and storage (CCS), as part of initiatives such as Saudi Vision 2030.
Collaboration between China and the GCC presents significant opportunities, combining China’s technological expertise and market demand with the GCC’s abundant resources and strategic location. This chapter examines the refining and petrochemical sectors in both China and the GCC countries, explores potential strategic partnerships, and outlines policy and technological roadmaps to optimize resource use and address sustainability challenges. By leveraging integration and collaboration, China and the GCC can strengthen their positions in the evolving global energy landscape.
