Asia is expected to register the highest refinery hydrocracking capacity additions globally between 2022 and 2026, contributing approximately 52% of the total capacity additions by 2026, says GlobalData, a leading data, and analytics company.

GlobalData’s latest report, ’Refinery Hydrocracking Units Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Units, 2021-2026’, reveals that Asia is likely to witness total hydrocracking unit capacity additions of 2,016 thousand barrels per day (mbd) by 2026. Of this, 842 mbd will be from new-build refineries while the remaining can be attributed to the expansion of existing refineries.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “China will account for more than half of the hydrocracking unit capacity additions in Asia by 2026. The Lianyungang I refinery in the country is the second largest upcoming expansion project in Asia with 142 mbd of capacity expected to be added in 2022. Among the new-build refinery projects, the planned Jieyang refinery in China is likely to add a capacity of 165 mbd in 2022.”

GlobalData identifies Africa as the second highest contributor to the global hydrocracking unit capacity additions, accounting for roughly 18% of the total additions by 2026. Nigeria accounts for the majority of the capacity additions in the region, with 204 mbd of capacity expected to be added by 2026 from two new-build projects.

Pappoppula adds: “The Middle East ranks third globally, contributing around 15% of global hydrocracking unit capacity additions. The planned Duqm I refinery in Oman will be one of the highest contributors in the region with 74 mbd of capacity expected to become operational by 2023.”