GlobalData: Asia to propel capacity growth in the global refinery crude distillation units industry to 2022
15 October 2018
Data and analytics company GlobalData forecasts that Asia will add the highest refinery crude distillation units (CDU) capacity in the global CDU industry between 2018 and 2022; contributing a total capacity of 5,041 thousand barrels of oil per day (mbd) by 2022, which will account for more than 40% of the global planned and announced refinery crude distillation unit capacity additions.
The company’s report: “Global Refinery Crude Distillation Units (CDU) Outlook to 2022” forecasts that around 12,295 mbd of planned refinery crude distillation unit capacity will be added globally by 2022, taking the total global refinery crude distillation unit capacity to around 117,392 mbd by 2022.
Asia also has the second highest new build capital expenditure (capex) globally of around US$17.9 billion during the 2018–2022 period. Among the countries in the region, China will have the highest planned refinery CDU capacity additions of 2,800 mbd by 2022.
China’s refinery crude distillation capacity is expanding rapidly, fueled by the growing demand from the domestic transportation sector and industrial growth. The crude distillation capacity expansion is also powering China’s crude imports, and will further help the country to increase refined petroleum products exports.—Sumit Kumar Chaudhuri, Oil & Gas Analyst at GlobalData
GlobalData identifies Africa as the second highest in terms of refinery CDU capacity additions. The region will add around 2,882 mbd of CDU capacity and has planned investment of around US$16.2 billion by 2022. Nigeria will be the top country in the region with planned refinery CDU capacity additions of 1,853 mbd during the outlook period.
North America is the highest among the global regions in terms of new build capex spending for CDU capacity additions with around US$28.9 billion during the forecast period. The region is expected to add around 567 mbd of planned CDU capacity by 2022. Among the countries in North America, Canada will lead with planned new build capex spending of around US$26.8 billion.
In terms of capacity, Dayushan Island refinery in China, Lagos I refinery in Nigeria and Al-Zour refinery in Kuwait are the top three planned and announced refinery crude distillation units between 2018 and 2022, with capacity of 800 mbd, 650 mbd, 615 mbd respectively.
In terms of capex, Advanced Tristar refinery in Canada, Heartland refinery in Canada, and Al-Zour refinery in Kuwait are the top three planned and announced refinery crude distillation units globally for the forecast period with capex of US$3 billion, US$2.4 billion and US$1.4 billion respectively.