Asia’s Planned Refinery Projects Pose Threat to
Disadvantaged European Refiners
Major refineries planned to come online over the next
four years, primarily new facilities in Asia, could lead to overcapacity
pressures on the global refining industry and accelerate deterioration of the
European refining sector, According to New Report.
According to the company’s latest report the slate of
planned refining capacity expansions globally would bring the total Crude
Distillation Unit (CDU) capacity to 100 million barrels per day (mmbd) by 2016,
reaching nearly 115 mmbd by 2019. Refinery construction is particularly booming
in Asia, with the region boasting 35 of the 91 currently-planned facilities.
China underpins this growth in the region, with
almost $30 billion in capital expenditure alone between Sinopec and PetroChina
for three new refineries, adding over 1 mmbd of CDU capacity.
Senior Analyst says: “China is planning
infrastructure to support anticipated product demand into the new decade. There
is a repositioning of global refinery capacity around Asia, which will pull
away as the global leader in refining.”
If all planned projects are completed, Jurecky states
that Asia would represent 35% of the world’s CDU capacity by the end of the
decade with 40.2 mmbd of capacity, up from 29.6 mmbd in 2010.
The report adds that less efficient refineries will
make way for newer facilities, while more speculative projects are likely to be
scaled back in capacity, with delays or cancellations possible.
Senior Analyst says: “While projects will undoubtedly
stall or be cancelled, the refining industry will still struggle, with new
capacity mounting pressure on disadvantaged refineries, many of which are in
Europe. Closures and capacity reductions at unprofitable refineries will
ultimately occur to rebalance the market.
“European refiners have been strategic in extending
operations for as long as possible. However, many of the planned refineries are
backed by large national oil companies interested in playing a bigger role in
the downstream sector, and market share will ultimately have to be ceded by the
least profitable operations.”
Global Capacity and Capital Expenditure Outlook for
Refineries - New-Build Refinery Pipeline Risks Over-Capacity and Puts Pressure
on Refiners report provides an annual breakdown of capital expenditure spending
on refineries for the period 2015 to 2019. It includes details of all planned
refineries in the world up to 2019, along with planned refinery capacity
additions and capital expenditure spending by major countries and operators.
This report was built using data and information
sourced from proprietary databases, primary and secondary research, and
in-house analysis conducted by Publisher’s team of industry experts.
For
further information on this report, please visit-
http://mrr.cm/4ht
Find all Refining Report at: http://www.marketresearchreports.com/refining
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