US multinational conglomerate Honeywell said it will continue investing in the Chinese refinery market in the next five years to help the local refining and chemical industry build up clean fuel production capacity and develop into a comprehensive petrochemical sector.

Honeywell produces a variety of consumer and commercial products, aerospace systems and engineering services for a range of customers like private consumers, major companies and governments.

"Honeywell sees China's carbon-neutral commitment as an opportunity to join hands with the Chinese partners to realize the refinery transformation by converting crude oil into more and more petrochemical products, or even completely into petrochemical products," said Henry Liu, vice-president and general manager of Honeywell Performance Materials and Technologies Asia-Pacific.

"Honeywell is uniquely positioned to shape a more sustainable future in China, together with local partners by continuously developing sustainability technologies that provide customers with efficient solutions to their energy and environmental needs."

China's oil refineries have been forging ahead with capacity expansion in recent years. The International Energy Agency estimates that China will officially surpass the United States as the world's largest oil refiner this year.

According to a white paper entitled The Refinery of the Future, which was released by Honeywell in Xiamen, Fujian province, on May 20, the refining industry in China will shift to production of cleaner transportation energy and specialty products, further extending the product portfolio to produce high value-added chemicals that match market demand.

Richard Chatterton, head of oil demand of BloombergNEF, said a significant reconfiguration of the global refining system is required in the future, and will favor integrated processors in low-cost regions over less flexible, higher cost producers.

Liu said he believes the country's carbon-neutral goals serve as both a challenge and a guide for further transformation and upgrading the local petrochemical industry.

"With the beginning of the 14th Five-Year Plan (2021-25) and the promulgation of the long-term goal of carbon neutrality, China's refining and petrochemical industry is ushering in a new era of major changes, making it imperative to accelerate the upgrading and optimization of the industrial structure and improve the overall efficiency of the industry," Liu said.

"While the refining and petrochemical industry has witnessed fast growth in recent years, leading to the increasingly prominent issue of oversupply, the rapid development of renewable energy also puts the industry under pressure to reduce carbon emissions while increasing petrochemical products output."

Believing technology will play a key role in the country's carbon-neutrality pledge, Honeywell said it will continue to invest in other leading-edge sustainability technologies.

"We believe these cutting-edge technologies could help our Chinese partners realize their goals in sustainable development," Liu said.