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Asia to spearhead global refinery hydrotreater capacity additions

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Hydrocarbon Engineering,

Asia is expected to register the highest refinery hydrotreater capacity additions globally between 2022 and 2026, accounting for approximately 39% of the total capacity additions by 2026, reports GlobalData.

The company’s latest report, 'Refinery Hydrotreater Units Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Units, 2022-2026', reveals that Asia is likely to witness total hydrotreater unit capacity additions of 4 180 000 bpd by 2026. Of this, 2 548 000 bpd is likely to be added from new-build refineries while the remaining is expected to come from the expansion of existing refineries.

Teja Pappoppula, Oil and Gas Analyst at GlobalData, commented: “Together, China and India will account for 74% of the hydrotreater unit capacity additions in Asia by 2026. The Vadinar refinery in India is the largest upcoming expansion project in Asia with 374 000 bpd of capacity expected to be added by 2024. Among the new-build refinery projects, the planned Yulong refinery in China is likely to add a capacity of 383 000 bpd in 2023.”

GlobalData identifies the Middle East as the second biggest contributor to the global hydrotreater unit capacity additions, accounting for 29% of the total additions by 2026. Iran is expected to account for the majority of the capacity additions in the region, with 962 000 bpd of capacity expected to be added from four new-build and an expansion project in the country by 2026.

Pappoppula added: “Africa ranks third globally contributing to around 17% of global hydrotreater unit capacity additions. The planned Lagos I refinery in Nigeria is likely to be one of the biggest contributors in the region with 410 000 bpd of capacity expected to become operational by 2023.”

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