Africa is expected to be the second largest region in terms of the global refinery hydrocracking units industry between 2019 and 2023, according to GlobalData, a leading data and analytics company
According to GlobalData, Africa will add around 1,177 mbl of oil per day of hydrocracking capacity during the period. Nigeria leads with capacity additions of 471 mbl of oil per day.
The company’s report ‘Global Refinery Hydrocracking Units Outlook to 2023 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Hydrocracking Units’ highlighted that around 4,712 mbl of oil per day of refinery hydrocracking capacity will be added globally by 2023 from new-build and expansion projects, taking the total global refinery hydrocracking capacity to 15,302 mbl of oil per day in 2023.
Asia will be the global leader in terms of refinery hydrocracking capacity additions during the outlook period with 1,867 mbl of oil per day. The region will also have the highest capital expenditure (capex) during the period for new-build and capacity expansion projects. Among the countries in the region, China will have the highest refinery hydrocracking additions of 1,055 mbl of oil per day.
Dipayan Chakraborty, oil and gas analyst at GlobalData, commented, “In Asia, countries such as China and India will account for most of the region’s refinery hydrocracking unit capacity additions by 2023. Demand for diesel, gasoline and jet fuel from the respective domestic transportation sectors is the primary reason for growth of hydrocracking capacity in these countries.”
In terms of capacity, among the upcoming refinery hydrocracking units globally, Dayushan Island refinery and Lianyungang II refinery, both in China, and Lagos I refinery in Nigeria will lead with 232 mbl of oil per day, 209 mbl of oil per day and 189 mbl of oil per day respectively by 2023.
