14 Mar 2019
Posted in Oil & Gas
China and Nigeria to propel capacity growth in the global refinery crude distillation units industry to 2023
China and Nigeria are expected to be the major contributors to the global refinery crude distillation unit (CDU) industry capacity growth from new-build and expansion projects between 2019 and 2023, according to GlobalData, a leading data and analytics company.
The company’s report: ‘Global Refinery Crude Distillation Units (CDU) Outlook to 2023 – Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Crude Distillation Units’ states that around 21,579 thousand barrels of oil per day (mbd), of refinery CDU capacity, is expected to be added globally by 2023, taking the total global refinery crude distillation unit capacity to around 121,454 mbd in 2023.
China is the global leader in terms of refinery CDU capacity additions during the outlook period with 4,000 mbd. The country also has the third highest new-build, and expansion capex globally, to be spent the over the next four years.
Sumit Kumar Chaudhuri, Oil & Gas Analyst at GlobalData, comments: “Growing demand from the domestic transportation sector and industrial growth is driving China’s primary distillation capacity additions. Crude distillation capacity expansion is also powering China’s crude imports, and will further help the country to increase exports of petroleum products.”
GlobalData identifies Nigeria as the second largest country in terms of refinery CDU capacity additions. The country will add around 2,039 mbd of CDU capacity by 2023. With 1,470 mbd of CDU capacity, Iraq will be the third largest country globally for refinery CDU capacity additions.
In terms of capacity, among the upcoming refinery CDUs, Dayushan Island refinery in China, Lagos I refinery in Nigeria and Al-Zour refinery in Kuwait will lead with 800 mbd, 650 mbd and 615 mbd, respectively, by 2023.