China is set to lead the global planned and announced liquid storage capacity with the highest capacity additions and capital expenditure (CAPEX) from 2018 – 2022, according to data and analytics company, GlobalData.
GlobalData’s latest report, ‘Global Capacity and Capital Expenditure Outlook for Liquids Storage’, forecasts that global liquids storage capacity will grow by 6.1% from 7.222 billion bbl in 2018, to around 7.659 billion bbl in 2022.
Asia, the Middle East and North America are expected to lead with the most planned liquids storage capacity additions of 283 million bbl, 75 million bbl and 69 million bbl, respectively, during the outlook period. China is expected to add a storage capacity of 159 million bbl and spend US$8 billion as CAPEX by 2022, followed by the US and India.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, commented: “China is rapidly increasing its oil storage capacity as part of its high priority programme to increase its strategic crude reserves. This is also as a result of the trade tensions between the US and China.”
In the Middle East, Oman has the most planned additional storage capacity, with 35.1 million bbl by 2022. In terms of CAPEX, Iraq leads with more than 60% of the region’s CAPEX (US$2 billion) to develop planned storage facilities, followed by Oman, with US$1.3 billion CAPEX over the next four years.
In North America, the US is poised to lead in terms of both capacity additions and CAPEX spent on the development of the upcoming storage facilities. The US is expected to add a storage capacity of 55.3 million bbl by 2022, with a capital spending of US$8 billion during the four-year outlook period.
Among companies across the globe, China Petrochemical Corp. has the most oil storage capacity with 67.1 million bbl, followed by Brightoil Petroleum (Holdings) Ltd and Oil Industry Development Board, with oil storage capacities of 39.7 million bbl and 32.2 million bbl, respectively.
In terms of CAPEX, China Petrochemical Corp. will lead globally among the companies. The company is expected to spend US$2.6 billion, followed by State Company for Oil Projects and Brightoil Petroleum (Holdings) Ltd, both with US$2 billion each.
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