Sinopec, China’s top refiner, to fast track energy transition as EVs erode demand for fuel

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Sinopec will adjust the product output of its refineries to produce more chemicals and less motor fuel as sales of EVs continue to rise, chairman Ma Yongsheng says

The company, which aims to become carbon neutral by 2050, reported a 6.2 per cent drop in greenhouse gases emissions last year, its first in five years

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Sinopec, the world’s largest oil refiner, said it is making progress towards becoming carbon neutral by 2050. Photo: AP Photo

Eric Ng

Published: 6:00pm, 27 Mar 2023

China Petroleum & Chemical (Sinopec), the world’s largest oil refiner by capacity, will accelerate its energy transition as the rising popularity of electric vehicles reduces demand for fuel, its chairman said on Monday.

The Beijing-based company will adjust the product output of its refineries, build more petrol stations that also provide charging services for EVs, and boost its hydrogen production capacity, said Ma Yongsheng.

“We will push forward efforts for our existing refineries to produce more chemicals and less motor fuel,” he told reporters on Monday.

“We will also boost our output of natural gas, a cleaner-burning fuel, and expand hydrogen production – especially that of green hydrogen.”

A file photo of Sinopec chairman Ma Yongshen from March 2019. Photo: Bloomberg

Currently, most of China’s and Sinopec’s hydrogen output comes from the conversion of coal and natural gas – both of which are carbon intensive raw materials.