An additional 11.7 million barrels per day (mmbd) of Crude Distillation Capacity (CDU) will come online globally between 2014 and 2020, with an annual average of 1.6 mmbd, says a new report from GlobalData.
Increases in predicted refining capacity from 2015-2019 are significantly higher than the forecasted long-term annual oil demand growth, a dynamic which will impact negatively upon refining margins, it is claimed.
The projection comes at a time of heightened focus on the future of the chemicals sector in Europe, for example, as fears arise about a combination of trends that leave the region in an uncompetitive position.
GlobalData’s report, titled Global Refining Capital Expenditures Forecast to 2020, states that with an additional CDU of 3.1 mmbd planned between 2014 and 2020, the Middle East will be the largest contributor to the world’s total capacity increase – accounting for approximately 27%.
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