Oil & Gas: Refinery Market Refinery Markets in Asia and the Middle East Boom
While refineries in Europe struggle and the industry in the US is forced to upgrade to meet increasingly stringent environmental norms, refiners in developing nations are about to take of. A recent report by market analysts GBI expects that a total of around 198.1 MMtpa of additional capacity will be installed in Asia and the Middle East during the next five years...
Most of the new growth will be driven by China, India, Indonesia and Malaysia. China and India in particular are expected to expand their refining capabilities to cater to their rapidly incraeasing domestic demand, intending to turn themselves into major regional refining hubs. Indonesia aims for a strong position on export markets, expanding its refineries to serve customers in Asia and Europe.
Refiner on developed countries are nevertheless struggling with a slack demand for refined products, stringent environmental regulations and higher investment needs. Some analysts see overcapacities of around 20 percent in Europe (more inSmall Margins Tighten The Noose on Europe's Refinery Market).
Middle East Transforms Into Exporter of Refinery Products
Also the Middle East, the leading producer and exporter of crude oil, is now aiming to become a major player on the market for refined products. Countries in the region are working on modernizing their existing refineries as well as implementing capacity expansions. Significant capacity additions are expected to come online during the next five years, with industry growth seen most prominently in Iran, Iraq and Saudi Arabia.
While traditionally crude oil from fields in the Middle East was shipped to Europe or the US where it was refined, newly planned refineries in the Middle East are targeting Western countries as their major export markets. For this purpose, new facilities hold the capability to process heavy crude and produce quality products in accordance with the environmental regulations upheld in developed countries.
This new competition of course casts its shadows on the oil and gas industry in developed countries... more on page 2!
More about the recent engineering projects in the oil and gas industry on PROCESS' project data base GROAB.