The Middle East is expected to be the third highest in terms of capex as well as crude distillation unit (CDU) capacity additions during 2019–2023, according to GlobalData, a leading data and analytics company
In the report, ‘H1 2019 Global Capacity and Capital Expenditure Outlook for Refineries – China Leads Global Refinery Capex and Capacity Additions,’ GlobalData reveals that the Middle East region is set to add about 3,378 mbl per day in 2023. Within the region, Iraq has the highest capacity of around 1,190 mbl per day in 2023 and is expected to spend around US$41.2bn during the forecast period on new-build refineries.
China is expected to lead the global refinery industry in terms of capex as well as CDU capacity additions during the period, with adding an estimated 3,121 mbl per day of CDU capacity. Nigeria follows next with 2,030 mbl per day of CDU capacity addition through 31 refineries by 2023.
Soorya Tejomoortula, oil and gas analyst at GlobalData, commented, “Continual industrial growth and high demand from the transportation sector is primarily driving China’s CDU capacity growth. The CDU capacity additions will also enable the country to strengthen its petroleum products exports.”
Asia is expected to add the highest CDU capacity of 6,801 mbl per day in 2023. The region is also expected to spend US$216.7bn on new-build (planned and announced) refineries during the outlook period.
GlobalData has identified Africa as the second highest among the regions in terms of CDU capacity additions. Within the region, 12 countries are expected to add 4,074 mbl per day of CDU capacity in 2023. Nigeria, Angola and South Africa are expected to be the major contributors with capacity additions of 2,030 mbd, 798 mbd and 400 mbd, respectively. The region plans to spend around US$121bn on the new-build refineries between 2019 and 2023.
Among the upcoming refineries, the Dayushan Island refinery in China, the Lagos I refinery in Nigeria and the Al-Zour refinery in Kuwait are the top three upcoming refineries globally in terms of CDU capacity by 2023.
