Growing domestic demand combined with huge oil reserves will lead to a significant increase in refining capacity in the Middle East, according to industry publication Offshore Technology, citing a study by GlobalData Energy.
“The Middle East is expected to be a key region in terms of growth in traditional refinery capacity worldwide, accounting for more than a quarter of the total increase by 2030. This growth is driven by large-scale projects, particularly in Iran and Iraq. Both countries are using their vast oil reserves to expand their oil refining infrastructure in an effort to meet growing domestic demand, reduce oil product imports, and strengthen their export capabilities,” the experts write.
In their opinion, Iran will dominate in terms of refinery commissioning, accounting for 40% of the total. The country plans to commission a total of 15 new and expanded projects. The largest of these is Jask II, with a declared capacity of 6,000 barrels per day. The project is currently in the preliminary design stage and is expected to be launched in 2028.
Oil refining capacity in Iraq is expected to increase by 1.9 million bpd. New projects are leading the way in terms of commissioning rates in the country, accounting for 65% of the total expected volume by 2030. About 28% of these are under construction. One of the significant projects, Basra II, involves increasing production by 300 bpd in 2027.
Oman ranks third in terms of oil refining capacity growth, with an increase of 695,000 bpd by 2030.
Ukraine in January-March 2018 increased its own production of petroleum products by 12%, in the petrol segment Ukrainian oil refineries reached a leading position in the domestic market, according to a study conducted by the A-95 Consulting Group (Kyiv). “For the first time since 2015, Ukrainian producers became leaders in the petrol market: in the first quarter of 2018 they accounted for 45.3% of the market, while in the same period of 2017 it was 42%. The largest supplier of petrol, Belarus, by the end of the quarter had 40.8% of the market, while in 2017 it had 47% of the market and in 2016 – 54%,” the press service of the A-95 group said.
In general, according to the company experts, the production of petrol by Ukrainian refineries in the first three months of the year increased 3.5%, to 195,400 tonnes.
In turn, domestic production of diesel fuel for this period increased by 23.6%, to 178,100 tonnes. Thus, the share of domestic manufacturers in the diesel fuel market increased to 14.2% in the first quarter of 2018 from 13.2% in the first quarter of 2017.
In general, in 2017, Ukrainian producers occupied 13% of the diesel fuel market, in 2016 – 11%.
The main increase in production, according to the A-95 group, was provided by the Kremenchuk oil refinery (Ukrtatnafta), increasing the output of diesel fuel by 27%, to 155,100 tonnes, petrol – by 7.7%, to 169,000 tonnes. In turn, Shebelynka gas refinery (Ukrgazvydobuvannia) increased diesel fuel production by 5.5%, to about 23,000 tonnes, but reduced petrol output by 17%, to 26,300 tonnes. “This was caused by a situational switch to the release of more liquid export positions in conditions of overstocking of the domestic market with petrol and a protracted winter with a reduced consumption of motor fuels,” the A-95 group said.
The petrol market in the first quarter of this year continued to decline: in comparison with the same period last year, the volume of deliveries decreased by 4.1%, to 431,000 tonnes. “The main reason for the decline is the switch of car owners to liquefied gas: its supplies increased by 17.3%,” the press service said.
The market of diesel fuel in January-March 2018, according to experts, increased 14.7%, to 1.252 million tonnes. The largest supplier of diesel fuel to the Ukrainian market was Russia, providing 42% of the balance sheet, the share of Belarusian producers was 33%, other suppliers – 10.5%. According to the A-95 experts, Ukrainian producers have all the opportunities for further growth in the market.
A-95 CONSULTING GROUP, INNER PETROL MARKET, LEADER, OIL REFINERIES
