Oil & Energy
Why Are China’s Fuel Refineries Rated So Low?
Fuel prices in Asia are going through the roof as demand for travel bounced back from the pandemic depression. Yet refining rates have not bounced back in sync, especially in China. And it might be deliberate.
Reuters’ Clyde Russell wrote in a recent column that China’s refined oil product exports this May, at 3.27 million tons, were as much as 40 percent lower than its May 2021 fuel exports. The refined oil product exports for the first five months of the year were down 38.5 percent from a year ago.
Given that the demand for fuels has been much higher this year than last, this trend certainly raises some questions.
Diesel exports in May, Russell noted, quoting Refinitiv data, were about half of what they were in May last year, which is odd, at best, given the rebound in economic activity across Asia. And fuel export quotas are lower this year.
Officially, China is limiting the export quotas to discourage refiners from producing excessive amounts of fuels, which would go counter to the government’s emission reduction plans over the long term, Reuters noted in an earlier report this month.
Yet the lower quotas combined with strong demand for fuels has had the effect of boosting margins for refiners outside, which they are hardly complaining about.
Meanwhile, Chinese refiners are having to deal with excessive inventories as the recent series of Covid-related lockdowns hurt domestic demand for fuels.
To relieve the burden, Beijing this month issued additional export quotas to the tune of 4.5 million tons of fuels, bringing the total quotas issued since the start of the year to 17.5 million tons. That compares with 29.5 million tons in fuel export quotas issued in the first batch for 2021.
Based on the data reported by Reuters, it seems that China is prioritising its long-term emission reduction targets over additional fuel production that would alleviate the squeeze across the region, which reflects a wider squeeze in Europe and the United States, resulting from tight refining capacity and sanctions on Russia.
Interestingly, China is one of the very few places with spare refining capacity, but for now, it appears the country would rather sit on it than tap it.
Of course, if it does tap it, there is the possibility that the refined products this capacity churns out would contain Russian oil, making the fuels to be hypothetically exported problematic if the destination is, for instance, Europe.
It recently surfaced that the U.S., despite a ban on all Russian oil products, was, in fact, importing fuels from India that were made from Russian crude—and this was not a one-time occurrence.
Meanwhile, refiners in Asia but outside China are reaping the benefits of the situation. Diesel margins are at record highs, Reuters reportedlast week, with those in Singapore gaining 60 percent over just two weeks.
Margins may peak soon as the monsoon season begins, which would weigh on demand. High prices themselves might also start to discourage consumption, some analysts believe.
However, domestic demand for fuels in China is set to increase now that the lockdowns are ending, supporting high margins. Demand from other parts of the world, notably Europe, will also help keep diesel prices high, according to analysts.
It seems that the fuel price inflation that has shaken governments across the world is not going anywhere anytime soon. The combination of strong demand, tight supply, and sanctions on the world’s largest fuel exporter is a tough one to beat, especially if beating it is not a priority. This seems to be the case with China and its spare oil refining capacity.
By: Charles Kennedy
Kennedy reports for Oilprice.com
Researchers in Hong Kong and China have developed a new form of battery that is more eco-friendly and longer lasting than lithium ion batteries – and it runs on tofu brine. The new water battery is still in research phases, but if the technology proves to be scalable enough to hit commercial markets, it could be a game-changer for the energy and tech sectors.
“Compared with current aqueous battery systems … our system delivers exceptional long-term cycling stability and environmental friendliness under neutral conditions,” the research team, composed of scientists from the City University of Hong Kong and Southern University of Science and Technology in Shenzhen, Guangdong, said in a paper published this month in Nature Communications.
The researchers found that their battery model can be recharged over 120,000 times. “At over a hundred thousand cycles, this could mean a single water-based battery could last at least a decade or so,” states a recent report on the breakthrough from Interesting Engineering. “For applications like grid storage (solar farms, wind balancing), that’s extremely valuable,” the article went on to say.
This kind of lifespan would represent a drastic improvement over the battery technologies that dominate today’s market. Lithium-ion batteries degrade after between 1,000 and 3,000 charge cycles. This could prove revolutionary, as finding an alternative to lithium-ion batteries to power rechargeable devices is a major priority for Big Tech and the global energy sector.
Moreover, these tofu-brine batteries could prove safer and more environmentally friendly than lithium-ion batteries. According to the study authors, the full cells are environmentally benign and nontoxic and can be directly discarded to environments according to various standards.” Water based (also called aqueous) batteries can also potentially be cheap to produce as they rely on ingredients that are less rare in addition to being less hazardous.
Lithium is environmentally harmful to extract, prone to fires, and its supply chains are geopolitically fraught. Currently, China alone controls half of the global lithium market, and is rapidly increasing its stake. In 2024, more than eight in ten battery cells on the planet were made in China. This means that finding a battery model that can compete with lithium-ion batteries in applications like grid-scale energy storage and electric vehicles would have revolutionary implications for global markets.
Researchers around the world have been racing to develop battery models that could diversify the market and make it more competitive and resilient. These models range widely in size, components, and application, with models currently under development for next-gen sodium-ion batteries, quantum batteries, nuclear batteries, and even sand and dirt batteries.
Of course, the irony is that the leading alternatives to lithium-ion batteries are also being developed in Chinese labs. If this new tofu-brine battery proves scalable and applicable outside of a laboratory environment, it could just be another step toward Beijing’s goal of near-total domination of clean energy technology value chains and status as the world’s first and premiere ‘electro-state.’
China’s extreme advantage in global battery making gives it a major point of leverage in global economies as the world continues to electrify at a rapid pace. It is estimated that European demand for lithium in batteries will reach kilo tonnes (thousands of tonnes) of Lithium Carbonate Equivalent by next year, and North American demand will reach 250 kit LCE. it’s all but certain that the vast majority of that demand will be supplied by China.
Other nations are aware of the risk of this dependency, and are taking pains to protect and promote domestic battery manufacturing, but these efforts may be too little, too late. “For globally competitive battery manufacturing industries to emerge outside of Asia over the next ten years, companies will need to do far more than ensure regulatory compliance,” summarizes a McKinsey & Company report released in January. “Challenges will need to be overcome on multiple fronts spanning supply chains, talent management, operations and technology.”
By: Haley Zaremba
The Rural Electrification Agency (REA) says it will spend N100 billion in 2026 to deploy hybrid mini-grids for government agencies within and outside Abuja.
The Managing Directors, REA, Abba Aliyu, disclosed this while addressing newsmen on the sidelines of the 2026 budget defence session
The approved funds form part of the National Public Sector Solarisation programme, a component of the agency’s broader N170 billion budget proposal for 2026.
The initiative is designed to improve electricity reliability for public institutions while reducing operational costs and easing pressure on the national grid.
Aliyu explained that the agency’s total proposed budget for 2026 stands at N170 billion, with N100 billion of the amount dedicated specifically to the solarisation initiative targeting government agencies.
He said the hybrid mini-grid systems combine solar power with complementary energy sources to ensure an uninterrupted electricity supply.
“The total budget size for 2026 operations is N170 billion, out of which N100 billion had been approved for National Public Sector Solarisation.
Aliyu cited the National Hospital in Abuja as an example where similar infrastructure had been deployed to ensure stable power and cut operational expenses.He added that beyond the Solarisation
Recall that earlier in February 2026, REA signed a Memorandum of Understanding with the Economic Community of West African States (ECOWAS) to deploy solar power systems to 15 public institutions across Nigeria.
The project will be implemented under the Regional Off-Grid Electricity Access Project (ROGEAP), a World Bank-supported initiative aimed at expanding off-grid electricity access across West Africa and the Sahel.
ECOWAS will provide a $700,000 grant to fund the installation of solar photovoltaic systems in selected rural health centres and schools in the Federal Capital Territory, Niger, and Nasarawa States.
Oil & Energy
PIA: TotalEnergies Transfers OLO Oilfield HCDT Obligation To Aradel ……Says HCDT Enabled Completion of 100 Projects In 2 years
In his remarks, the Community Affairs Manager, Aradel Holdings Plc, Blessyn Okpowo, affirmed the company’s commitment to honouring all PIA obligations and continuing Total Energies’ community engagement approach.“We want to say that in line with the PIA, we will honour commitments and duties required of the settlor and we want to work very smoothly with the way TotalEnergies has worked with them,” he stated.
He recognised the Commission’s role in approving the Community Development Plan (CDP) before project start, underscoring regulatory excellence.The parties noted that between 2023 and 2025, the trust has enabled the completion of more than 100 community projects, spanning water supply, electricity, road infrastructure, education, and healthcare with a further 40 projects currently ongoing.
