Asia is expected to be the major contributor to the growth of the global refinery hydrocracking units industry between 2019 and 2023, according to GlobalData, a leading data and analytics company.
The company’s report: ‘Global Refinery Hydrocracking Units Outlook to 2023 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Hydrocracking Units‘ says that around 4,712 thousand barrels of oil per day (mbd) of refinery hydrocracking capacity will be added globally by 2023 from new-build and expansion projects, taking the total global refinery hydrocracking capacity to 15,302 mbd in 2023.
Asia will be the global leader in terms of refinery hydrocracking capacity additions during the outlook period with 1,867 mbd. The region will also have the highest capital expenditure (capex) during the period for new-build and capacity expansion projects. Among the countries in the region, China will have the highest refinery hydrocracking additions of 1,055 mbd.
Dipayan Chakraborty, Oil & Gas Analyst at GlobalData, comments: “In Asia, countries such as China and India will account for most of the region’s refinery hydrocracking unit capacity additions by 2023. Demand for diesel, gasoline and jet fuel from the respective domestic transportation sectors is the primary reason for growth of hydrocracking capacity in these countries.”
GlobalData identifies Africa as the second largest region in terms of refinery hydrocracking capacity additions. The region will add around 1,177 mbd of hydrocracking capacity during the period. In Africa, Nigeria leads with capacity additions of 471 mbd.
In terms of capacity, among the upcoming refinery hydrocracking units globally, Dayushan Island refinery and Lianyungang II refinery, both in China, and Lagos I refinery in Nigeria will lead with 232 mbd, 209 mbd and 189 mbd, respectively, by 2023.