Sinopec has predicted that China's petroleum demand will peak before 2027, earlier than previously expected.

In the 2024 edition of the "China Energy Outlook 2060" report released by the world's largest refinery, the China Petroleum & Chemical Corporation (Sinopec) expects China's petroleum demand to peak before 2027.

In its previous 2023 outlook report, Sinopec had stated that it expected China's petroleum consumption to peak between 2026 and 2030 due to the accelerated adoption of electric vehicles.

In its latest report, the Chinese company stated that China's coal consumption, which ensures the country's energy security, will no longer grow around 2025.

According to the Sinopec report, China's natural gas consumption is on the rise and is predicted to peak by 2040.

This refining and petrochemical giant forecasted in its latest outlook report that non-fossil energy will dominate China's total energy supply by around 2045.

Alongside the energy outlook, Sinopec released the "China Hydrogen Energy Industry Outlook," which predicts that by 2060, China's hydrogen energy consumption will reach 86 million tons, creating an industry worth $635 billion (4.6 trillion Chinese yuan). Sinopec stated that non-fossil fuel used as an energy source for hydrogen production will increase to 93% by then, with solar and wind energy accounting for two-thirds of hydrogen production.

Last month, consulting firm DNV, in a separate report on China's energy transition outlook, predicted that China's petroleum consumption would peak in 2027. However, due to continued use of petroleum in petrochemicals, aviation, and shipping, the country's petroleum consumption will halve by 2050 from its 2027 peak. DNV stated that China's natural gas demand will peak in the 2030s and return to current levels by mid-century.

In 2050, China will meet 84% of its petroleum consumption through imports. Natural gas consumption will remain high, with 2050 consumption levels slightly below 2023 levels, and 58% of it will be imports.