Report: Global oil storage capacity to grow at 5.7%, undeterred by project cancellations

The global oil storage capacity is projected to grow to 5,600 million metric barrels (mmbbl) by 2020 from 5,296.9mmbbl in 2016, unaffected by the shelving of six oil storage projects, states a report by GlobalData.

The cancellation has occurred since August 2015, while five new oil storage terminals have also been announced during this time.

Titled ‘Global Capacity and Capital Expenditure Outlook for Oil Storage – Project Changes and Cancellations Cut Projected Storage Capacity 10% by 2019‘, the report states that Asia will lead the growth with an addition of 265.1mmbbl in oil storage capacity by 2020, followed by Middle East with 124.9mmbbl.

China is projected to have the highest planned capex of $6.0bn in Asia, to develop planned oil storage facilities by 2020.

In the Middle East, Saudi Arabia and Oman are expected to have a combined capex of $7.5bn for developing oil storage facilities and also boast of the highest planned oil storage capacity in the region.

In terms of companies with the highest planned oil storage capacity by 2020, Saudi Arabian Oil Company will dominate at 64.9mmbbl followed closely by CNOOC Ltd at 62.9mmbbl. In Asia, China Petrochemical Corporation will lead with $1.8bn in planned capex for oil storage capacity additions.

The report mentions that the world’s leading planned oil storage terminals based on capacity by 2020 are Al Muajjiz (62.9mmbbl), Fujian II (62.9mmbbl) and Ulsan XIII (28.4mmbbl).

The other Asian countries expected to witness growth, both in capacity and capital spending, include Malaysia, Indonesia and South Korea, while Iran in the Middle East is also expected to see growth in terms of capacity and capital spending.