The global conventional refining industry is set to expand considerably from 2025 to 2030, fuelled by increasing energy demands from emerging markets and strategic investments in refining infrastructure.
Consequently, capacity additions of crude distillation units (CDUs) are accelerating globally, with Asia projected to lead these expansions across all regions through 2030, said GlobalData, Offshore Technology’s parent company.
Asia is likely to add CDU capacity additions of 8.87 million barrels per day (mbbl/d) between 2025 and 2030, followed by the Middle East and Africa with 6.21mbbl/d and 5.31mbbl/d, respectively, said the report.
Bhargavi Gandham, oil and gas analyst at GlobalData, said: “The increasing energy demand, driven by expanding populations and economies, especially in China, India, Pakistan and Indonesia is anticipated to propel capacity additions in CDU across Asia.”
India is expected to witness the highest CDU capacity additions in Asia, with 2.36mbbl/d of capacity expected to be added by 2030.
GlobalData’s latest report is titled Conventional Refineries Industry to 2030 – Capacity and Capital Expenditure Outlook with Details of All Operating and Upcoming Refineries.
The CDU expansion project at the Vadinar refinery in India, with a capacity of 515,000 barrels per day (bpd), is the largest upcoming CDU refinery in the country in terms of capacity additions in 2025–30. It is due to begin its operations in 2026.
Other notable refineries, including Haldia III, Panipat and Paradip, are expected to contribute significant capacity additions during the outlook period.
GlobalData identified China as the second-highest contributor to the CDU capacity additions in Asia, accounting for approximately a quarter of the region’s capacity additions by 2030. Among the upcoming CDU projects in China, Caofeidian V leads with 401,000bpd of CDU capacity to be added in 2029.
Pakistan ranked third, contributing around 15% of the region’s total CDU capacity additions during the outlook period. The Larkana refinery leads in terms of upcoming CDU capacity with 400,000bpd.
Gandham concluded: “Several Asian nations are actively investing in the modernisation and expansion of their refining infrastructure, aimed at strengthening energy security and improving refining efficiency. These initiatives are expected to drive CDU capacity additions in the region.”
"Asia to lead CDU capacity additions until 2030, says GlobalData" was originally created and published by Offshore Technology, a GlobalData owned brand.
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