• Thursday, March 28, 2024
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Nigeria, China lead in global refinery capacity growth – Report

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A recent report released by world leading data and analytics company, GlobalData, has mentioned China, Nigeria and India to be at the front position of the global Crude Distillation Unit (CDU) capacity growth with highest planned and announced capacity additions and capital spending over the next four years.

The report under the theme, ‘Semi-Annual Global Capacity and Capital Expenditure Outlook for Refineries’, forecast that Nigeria will add 2,106 million barrels day (mbd) of CDU capacity through 25 refineries by 2022.

“Nigeria is expected to spend $49.3billion in the next four years on the new refineries; India is expected to add 1,280 mbd of CDU capacity by 2022, and Capital Expenditure (CAPEX) of $72 billion is expected to be spent over the next four years,” GlobalData said in the report

The report also forecasted the global CDU capacity to register an impressive 16.7 percent growth over the next four years, increasing from 101 million barrels per day (mbd) in 2018 to 117 mbd by 2022.

Anna Belova, Senior Oil & Gas Analyst at GlobalData, said “Among countries, China, Nigeria and India lead with most planned and announced CDU capacity additions and capital spending by 2022.

“China is poised to add 3,100 thousand barrels per day of CDU capacity through 10 refineries, and is expected to have CAPEX of $54.6 billion on new refineries by 2022,” Belova said in the report.

Among regions, Asia is forecast to have the highest planned and announced CDU capacity of 6.8 mbd in 2022, followed by Africa with 3.3 mbd. In terms of global capital spending, Asia is ahead again with proposed CAPEX of $254 billion for planned and announced projects up to 2022. Africa and the Middle East follow with $117 billion and $88 billion respectively.

In terms of planned refineries, the Dayushan Island refinery in China and the Ratnagiri refinery in India leads in CDU capacity additions by 2022, each with 800 mbd, followed by the Lagos I refinery in Nigeria with a CDU capacity addition of 650 mbd.

Kuwait Petroleum Corporation, Saudi Arabian Oil Company, Dangote Group and China Petrochemical Corporation are the key companies in terms of CDU capacity additions during the outlook period.

Also, Swiber Africa Limited (a Subsidiary of the SLOK Group of Companies) yesterday signed a strategic partnership agreement with a Spanish Services Firm Servicios Globales Fimaisys S.L. and an American Firm Global Services Advisors LLC for the establishment of a refinery in Nigeria.

The partnership would lead to the construction of a modular refinery within the next one year and a completion of a much bigger refinery of about 300,000 barrels per day production capacity in the next three years. SLOK Nigeria Ltd is a leading indigenous player in the upstream sector of Nigeria’s oil and gas industry.

The corporation operates in marine transport service involving offshore support and deep sea transportation within the Nigerian coastal and inland waterways.

SLOK Nigeria Ltd is the largest indigenous company in the Federal Republic of Nigeria, which owns, operates, and manages its own fleet. SLOK Nigeria Limited is chaired by Forbes rated Billionaire businessman, Orji Kalu.