Nigeria is expected to drive the growth of new-built crude distillation (CDU) capacity in the global refinery industry from planned and announced (new-built) projects over the 2019-2023 outlook period
It will contribute to around 13 per cent of global CDU capacity growth by 2023, according to GlobalData, a data and analytics company.
The company’s report, ‘H2 2019 Global Capacity and Capital Expenditure Outlook for Refineries – Nigeria Leads Global Refinery CDU Capacity Additions’, reveals that Nigeria is expected to have a new-build refinery CDU capacity of 1,935 mbl per day by 2023.
Planned projects with identifiable development plans account for 58 per cent of the new-build capacity (1,118mbd), while the remaining 817mbd is expected to come from early-stage announced projects.
Dipayan Chakraborty, oil and gas analyst at GlobalData, said, “Nigeria is expected to add 32 new-build refineries from 2019-2023. Among these, Lagos I is the largest new-build refinery, which is expected to start operations in 2020 with a capacity of 650mbd.”
Following Nigeria, GlobalData has identified China as the second-highest country in terms of global CDU refining capacity growth, adding a new CDU capacity of 1,621mbd by 2023. The Jieyang refinery in Guangdong is the largest future refinery in China with a new CDU capacity of 400mbd by 2023.
“Iraq stands third with new-build CDU capacity growth of 1,200mbd by 2023. The Basra II refinery is the largest upcoming refinery in Iraq with new-build CDU capacity of 300mbd by 2023,” Chakraborty concluded.