Report: Asia to have highest planned and announced CDU capacity

Asia is expected to take the lead in terms of planned and announced crude distillation unit (CDU) capacity and capital spending, according to a report by GlobalData.

Titled ‘Semi-Annual Global Capacity and Capital Expenditure Outlook for Refineries – Developing Countries Drive Global Capacity Additions and Capital Spending’, the report focuses on capacity additions and capital spending in the global refinery industry during the 2018 to 2022 period.

Globally, CDU capacity is projected to increase from 101 million barrels per day (mmbd) this year to 117mmbd by 2022, which represents 16.7% growth.

Asia is poised to have capacity in the region of 6.8mmbd in 2022, with Africa anticipated to take the second spot with 3.3mmbd.

The region is also set to lead in terms of global capital spending, with proposed capital expenditure (capex) of $254bn to undertake planned and announced projects up to 2022.

Africa is expected to finish second with a capex of $117bn, followed by The Middle East with $88bn.

China, Nigeria and India are likely to have the most planned and announced CDU capacity additions and capital spending in the next four years.

China will witness the addition of 3,100 thousand barrels per day (mbd) of CDU capacity through ten new refineries, which are set to receive an investment of $54.6bn during the period.

Nigeria expects to enhance CDU capacity with the addition of 2,106mbd through 25 refineries by 2022, while its expenditure on the new build refineries is anticipated to be in the region of $49.3bn.

India is set to add 1,280mbd of CDU capacity and spend $72bn over the next four years.

Among refineries, the Dayushan Island refinery in China, the Ratnagiri refinery in India, and the Lagos I refinery in Nigeria are expected to occupy the top positions in terms of CDU capacity.