Report: Global crude distillation unit capacity projected to grow 16% by 2021

The global crude distillation unit (CDU) capacity is expected to grow by 16% over the next four years, according to a report by GlobalData.

Titled ‘H1 2017 Global Capacity and Capital Expenditure Outlook for Refineries – New Project Announcements Gain Momentum’, the report forecasts the global CDU capacity to increase from 100.6 million barrels a day (mmbd) in 2017 to 116.6mmbd by 2021.

A total of 34 new-build refineries were planned to be built, 19 of which have been stalled and 15 cancelled since the previous report published in August 2016.

In terms of countries, Malaysia and Nigeria are forecast to witness the highest CDU capacity growth during the forecast period. The two countries are expected to collectively spend $75.5bn to increase their CDU capacity to 2,991 thousand barrels a day.

In terms of capital expenditure (capex), Asia is expected to have the highest capex among all the regions. A total of 11 countries are projected to add a CDU capacity of 5,589mbd in the region by spending $172bn on planned refineries over the next four years.

Asia will be followed by the Middle East in terms of capex spending, with $89bn planned to be spent by seven countries, increasing the CDU capacity by 3,406mmbd over the next four years.

The next country with the highest capex spending will be Africa, with 14 countries in the region spending $83.2bn on planned refineries to increase the region’s CDU capacity to 3,096mmb. The Former Soviet Union is expected to spend $46.6bn to increase its CDU capacity to 718mmbd.

South America, Venezuela, Colombia, and Brazil are expected to build new refineries in 2021. The Former Soviet Union also plans to build new refineries at Nakhodka, Amur and Chechnya in Russia, and Paldiski in Estonia.

The top planned refineries in terms of capex spending are at Nakhodka in Russia, and Pengerang and Yan in Malaysia with capex of $24bn, $22bn and $20bn respectively.

The top planned refineries in terms of capacity will be Merapoh, Al-Zour and Lagos I, with capacities of 800mmbd, 615mmbd and 500mmbd respectively.