Asia to dominate global refining industry by contributing 40% of new-build capacity growth by 2024, says GlobalData

Asia is expected to lead the global refining industry by contributing about 40% of refining capacity additions from planned and announced (new-build) projects between 2020 and 2024, says GlobalData, a leading data and analytics company.

The company’s report, ‘Global Refining Industry Outlook to 2024 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Refineries’, reveals that Asia is expected to add 5.3 million barrels per day (mmbd) of planned and announced crude oil refining capacity by 2024. Out of this, 2.8 mmbd comes from the planned projects, while the remainder is from the announced projects.

Adithya Rekha, Oil and Gas Analyst at GlobalData, comments: “In Asia, about 47 planned and announced refineries are expected to start operations between 2020 and 2024.Among these, 18 are planned refineries and 29 are announced refineries. The Hambantota III refinery in Sri Lanka is the largest upcoming refinery in Asia with the refining capacity of 420 mbd. It is expected to start operations in 2024.”

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GlobalData expects Middle East to be the second largest region in terms of planned and announced refining capacity. The region is expected to have 3.5 mmbd of refining capacity by 2024. Within the region, Iran will have the highest planned refining capacity of about 1.3 mmbd by 2024. The Al-Zour refinery in Kuwait is the largest upcoming refinery in the Middle East region with a planned refining capacity of 615 thousand barrels per day (mbd). Africa will be the third largest among the regions in terms of planned and announced refining capacity over the outlook period 2020–2024. Within the region, Nigeria, South Africa and Egypt are expected to be the major contributors with planned and announced refining capacities of 1.8 mmbd, 445 mbd and 209 mbd, respectively, by 2024. The Lagos I refinery in Nigeria is the largest upcoming refinery in the region with planned refining capacity of 650 mbd.

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