Asia is expected to witness the highest crude distillation unit (CDU) capacity additions globally contributing about 47% of the total CDU capacity additions by 2026, according to GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Refining Industry Market Installed Capacity and Capital Expenditure (CapEx) Forecast by Region and Countries including details of All Active Plants, Planned and Announced Projects, 2022-2026’, reveals that Asia is likely to witness a total CDU capacity addition of 7.1 million barrels per day (mmbd) by 2026. Of this, new build capacity would be 4.3 mmbd while the rest is from expansion of existing refineries.
Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “China and India primarily drive refinery CDU capacity additions in Asia by 2026. Yulong and Jieyang, both in China, are the largest upcoming new-build projects in Asia during 2022 to 2026 outlook period, each with a capacity of 400 thousand barrels per day (mbd). Among the expansion projects, Vadinar in India is expected to witness the highest capacity additions of 515 mbd by 2026 in the region.”
GlobalData identifies the Africa as the second highest contributor to the global CDU capacity additions accounting for about 22% of the total additions by 2026. New build projects contribute to almost entire capacity additions in the region with Lagos I refinery in Nigeria leading the way with a capacity of 650 mbd by 2026. The major expansion project in the region is the Assiut I refinery in Egypt. It is expected to start operations in 2024 with a capacity of 100 mbd.
Middle East ranks third globally contributing about 19% of world’s CDU capacity additions during the outlook period 2022–2026. Al-Zour in Kuwait drives the new build CDU capacity additions in the region with 615 mbd by 2026. Ruwais in United Arab Emirates and Isfahan in Iran drive the expansion capacity additions with 200 mbd and 120 mbd, respectively.
- Comments provided by Teja Pappoppula, Oil & Gas Analyst at GlobalData
- Information based on GlobalData’s report: ‘Refining Industry Market Installed Capacity and Capital Expenditure (CapEx) Forecast by Region and Countries including details of All Active Plants, Planned and Announced Projects, 2022-2026’
- New build: Denotes only assets/projects that are in different stages of development and have not started commercial operations
- Expansion – Denotes capacity expansion of a unit(s) in an existing refinery
- This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
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