‘China and Indonesia to lead global oil storage capacity growth’

china indo 11China and Indonesia will be the major contributors for the growth of the global oil storage industry. (Image source: Reinhard Link/Flickr)China and Indonesia will be the major contributors for the growth of the global oil storage industry, as they are set to add the most planned storage capacity among all countries from 2018–2022, according to GlobalData, a leading data and analytics firm

The company’s report ‘Global Planned Oil Storage Industry Outlook to 2022’ forecasts global planned oil storage capacity to grow from 15.2mn cu/m in 2018 to 68mn cu/m by 2022.

“Globally, 126 new terminals are expected to commence operations between 2018 and 2022. The US, China and India are the major countries, with the highest planned oil storage terminal count of 20, 11 and 8 respectively,” said GlobalData.

China is the global leader with the highest planned oil storage capacity and also second highest among the countries in terms of capex spending for the forecast period. The country is expected to spend about US$5.5bn during the outlook period. China’s new build capacity is expected to increase from 3.1mn cu/m in 2018 to 11.7mn cu/m by 2022, registering a threefold growth during the outlook period.

Soorya Tejomoortula, oil and gas analyst at GlobalData, explained, “China is rapidly increasing its oil storage capacity as part of its high priority programme to increase its strategic crude reserves. The recent high profile trade talks between the US and China and the resultant trade tensions are further forcing China to boost its strategic crude reserves programme.”

GlobalData identifies Indonesia as the second highest country in terms of planned storage capacity additions for the period 2018 to 2022. The country expects to increase the planned storage capacity by 8.6mn cu/m by 2022 and has a capex of US$2.5bn.

Tejomoortula added, “As in China, Indonesia too has initiated a strategic petroleum reserves programme that aims to store 30 days of crude, leading to the growth of oils industry in the country. Growing demand for petroleum products in Indonesia, especially in the eastern parts, is also driving the growth.”

The US will be the top spender in global planned oil storage industry accounting for about 17 per cent of the global capex on upcoming storage terminals. The country will spend an aggregate amount of US$6bn on new build refineries over the period 2018-2022. The country’s oil storage capacity would reach to 7.2mn cu/m by 2022, should all the projects be realised.

“In terms of capacity, Chandikhol in India is the top planned oil storage terminal in the world, followed by Jask in Iran and Lawe-Lawe CCT in Indonesia. In terms of capex, East Grand Bahama terminal in the Bahamas has the highest capex, followed by Hainan III terminal in China and Rapid in Malaysia,” said GlobalData.

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