China expands fossil fuel infrastructure to bolster energy security

China's energy security strategy is heavily reliant on fossil fuels, which met approximately 78% of the country's primary energy demand in 2025. Despite significant investments in renewable technologies like wind, solar, and electric vehicles, the nation's economy remains powered by hydrocarbons.

To mitigate the risks of global market disruptions—such as the closing of the Strait of Hormuz—China has aggressively expanded its domestic infrastructure. The country has built extensive crude oil storage capacity, estimated at 1.4 billion barrels, and developed one of the world's largest networks of LNG regasification terminals. Furthermore, China's downstream refining capacity reached 18.5 million barrels per day in 2025, a figure comparable to that of the United States.