GlobalData says Nigeria to drive global refinery CDU industry capacity

Source: press release, 27 August 2019

Planned and announced refinery CDU capacity additions by key countries, 2019-2023 (source: GlobalData, Oil and Gas Intelligence Center)
Planned and announced refinery CDU capacity additions by key countries, 2019-2023 (source: GlobalData, Oil and Gas Intelligence Center)

Nigeria is expected to drive new-build crude distillation unit (CDU) capacity growth in the global refinery industry from planned and announced (new-build) projects during the outlook period 2019 to 2023, contributing around 13% 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 thousand barrels per day (mbd) by 2023. Planned projects with identifiable development plans account for 58% of the new-build capacity (1,118 mbd), while the remaining 817 mbd is expected to come from early-stage announced projects.

Dipayan Chakraborty, Oil and Gas Analyst at GlobalData, says, “Nigeria is expected to add 32 new-build refineries during 2019 to 2023. Among these, Lagos I is the largest new-build refinery, which is expected to start operations in 2020 with a capacity of 650 mbd.”

Following Nigeria, GlobalData identifies China as the second highest country in terms of global refinery CDU capacity growth, adding a new-build CDU capacity of 1,621 mbd by 2023. The Jieyang refinery in Guangdong is the largest upcoming refinery in China with new-build CDU capacity of 400 mbd by 2023.

Chakraborty concludes, “Iraq stands third with new-build CDU capacity growth of 1,200 mbd by 2023. The Basra II refinery is the largest upcoming refinery in Iraq with new-build CDU capacity of 300 mbd by 2023.”