China to spearhead Asian refinery hydrocracking unit capacity growth by 2024

China is expected to lead Asian refinery hydrocracking unit capacity growth, contributing around 57% of the region’s total capacity growth (some 688,000 b/d) by 2024, reports GlobalData.

According to the company’s latest analysis, Asia’s hydrocracking unit capacity is expected to increase by 1.2mn b/d, from 3.8mn b/d in 2019 to about 5mn b/d by 2024. Out of Asia’s total capacity additions, 793,000 b/d is expected to come from newbuild planned projects, while the remaining 404,000 b/d is likely to come from the expansion of active projects.

Adithya Rekha, Oil and Gas Analyst at GlobalData, comments: ‘Out of China’s total hydrocracking unit capacity additions of 688,000 b/d by 2024, 202,000 b/d is likely to come from active expansion projects and the remaining 485,000 b/d is expected to be contributed by newbuild projects by 2024. Among the refineries in China, Lianyungang II, Jieyang and Zhenhai are the major refineries with hydrocracking units, accounting for most of the capacity additions in the country with a combined total of 453,000 b/d by 2024.

GlobalData expects Thailand to occupy the second place in terms of hydrocracking unit capacity additions by 2024. The country is expected to contribute about 16% of Asia’s hydrocracking unit capacity growth, with hydrocracking units of the Sriracha I refinery accounting for most of the capacity additions, with 194,000 b/d.

Rekha concludes: ‘India will be the third-highest country in Asia, with 169,000 b/d capacity addition by 2024. The hydrocracking unit capacity additions are from Visakhapatnam and Mumbai refineries.’