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China continues to drive Asia’s refinery CDU capacity

Published by , Editorial Assistant
Hydrocarbon Engineering,

China is expected to dominate Asia’s refinery crude distillation unit (CDU) capacity additions, contributing about half of the regions’ total CDU capacity additions between 2022 and 2026, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Global Capacity and Capital Expenditure Outlook for Refineries, 2022–2026’ reveals that China is expected to witness a total CDU capacity additions of 3.4 million bpd, of which 2.8 million bpd would be from new-build projects, and the rest from expansion projects.

In China, eight new-build CDU refineries are likely to start operations by 2026, of which five are planned with identified development plans, and the remaining three are early-stage announced refineries. Yulong and Jieyang are the largest new-build refineries, each with a CDU capacity of 400 000 bpd.

Bhargavi Gandham, Oil and Gas Analyst at GlobalData, comments: “Strong economic growth and rising demand for petrochemicals and petroleum products are the primary drivers for refinery capacity additions in China.”

GlobalData expects India to be the second-highest contributor to Asia’s refinery CDU capacity additions with a total of 1.6 million bpd by 2026. The Barmer and Nagapattinam II refineries account for the entire new-build capacity additions in the country, each with a capacity of 180 000 bpd.

Bhargavi adds: “Large investments by state-owned refining companies, and upgradation of refining technologies are expected to boost refinery capacity and reduce costs in India.”

Indonesia is expected to add the third-largest refinery CDU capacity additions in Asia with 526 000 bpd by 2026. The Java Island refinery is the largest refinery in the country expected to start operations by 2026. It has a capacity of 100 000 bpd and is expected to start operations in 2025.

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