Asia is forecast to be the major contributor to the growth of the global refinery hydrocracking units industry between 2018 and 2022, accounting for around 45% of the global planned and announced refinery hydrocracking unit capacity additions by 2022, according to leading data and analytics company GlobalData.
The company’s report: ‘Global Refinery Hydrocracking Units Outlook to 2022 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Hydrocracking Units’ forecasts that around 3,039 thousand barrels of oil per day (mbd) of planned refinery hydrocracking unit capacity will be added globally by 2022, taking the total global refinery hydrocracking unit capacity to around 13,835 mbd by 2022.
Asia also has the highest planned and announced new-build capital expenditure (capex) spending globally with roughly US$20.7bn during the 2018–2022 period. Among the countries in the region, China will have the highest planned refinery hydrocracking unit additions of 889 mbd by 2022.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, explains: “China’s refinery hydrocracking units capacity is expanding rapidly, fuelled by demand for diesel, gasoline and jet fuel by the domestic transportation sector. The country is planning to add 11 refinery hydrocracking units by 2022, accounting for more than 65% of Asia’s total hydrocracking capacity additions.”
GlobalData identifies Africa as the second highest in terms of refinery hydrocracking unit capacity additions as well as planned capex spending. The region will add approximately 836 mbd of hydrocracking unit capacity and has planned capex of around US$14.3bn by 2022. Nigeria will be the top country in the region with planned hydrocracking unit capacity additions of 396 mbd during the forecast period.
Tejomoortula adds: “Nigeria is expanding refinery hydrocracking units to reduce imports of gasoline and other petroleum products. The country is also planning to export petroleum products to generate valuable foreign exchange.”
In terms of capacity, Dayushan Island refinery in China, Lagos I refinery in Nigeria and Visakhapatnam refinery in India are the top three planned and announced refinery hydrocracking units for the 2018–2022 period with capacities of 232 mbd, 189 mbd, and 117 mbd respectively.
In terms of capex, Nakhodka refinery in Russia with US$1.9bn is the top planned and announced refinery hydrocracking units globally between 2018 and 2022. Tabi refinery in Angola and Lagos I refinery in Nigeria follows, with almost equal planned and announced new build capex of US$1.6bn each.
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