Asia is expected to witness the highest crude distillation unit (CDU) capacity additions globally, contributing about 48% of the total global CDU capacity additions by 2026, forecasts GlobalData, a leading data and analytics company.

GlobalData’s report, “Refineries Capacity and Capital Expenditure Outlook, 2022-2026”, reveals that Asia is likely to witness a total CDU capacity addition of 6.8 million barrels per day (mmbd) by 2026. Of this, the new build capacity will be 4.4 mmbd, while the rest is from the expansion of existing refineries.

Jieyang and Yulong, both in China, each with a capacity of 400 thousand barrels per day (mbd), will be the largest upcoming CDU projects in Asia during the 2022 to 2026 outlook period. The Jieyang project is expected to start its operations in 2022 while the Yulong project will commence in 2023.

Bhargavi Gandham, Oil and Gas Analyst at GlobalData, comments: “China and India primarily drive the refinery CDU capacity additions in Asia by 2026. Growth of refining activity in these two countries can be ascribed to robust economic recovery from COVID-19, and growing demand for fuels, especially from the transportation sector.”

GlobalData identifies Africa as the second highest contributor to the global CDU capacity additions accounting for about 23% of the total additions by 2026. Among the upcoming CDU projects in the region, Lagos I in Nigeria leads with a CDU capacity of 650 mbd by 2026. Coega in South Africa follows with 400 mbd.
The Middle East ranks third globally contributing about 19% of the world’s CDU capacity additions during the 2022–2026 outlook period. The Ruwais refinery in the UAE leads in terms of upcoming CDU capacity with 760 mbd. It is followed by Al-Zour refinery in Kuwait with 615 mbd.
Source: Global Data