Lewes, DE -- (SBWIRE) -- 07/09/2014 -- The global refining capital expenditure (CAPEX) is forecast to reach approximately $333 billion between 2014 and 2020, representing an annual average of almost $48 billion and 1.6 million barrels per day (mmbd), according to "Global Refining Capital Expenditures Forecast at over $300billion for New Capacity on-line by 2020; Refining Margins to Remain Under Pressure as Annual Capacity Increases Forecast to Exceed Growth in Annual Oil Demand" report.
This report states that the total expenditures in Asia will amount to 46% of the world’s total, with China at 17%, India at 12% and All Other Asia at 17%, thanks to National Oil Companies (NOCs) increasing capacity levels in China, India, Vietnam, Indonesia, Malaysia and Pakistan.
The Middle East’s expenditure will account for 23% of capital spending by the end of the forecast period, with NOCs building capacity in Saudi Arabia, Kuwait, Iraq, Iran and the United Arab Emirates (UAE) to meet their growing oil demands for refined product export purposes.
Senior Analyst, says: “Thanks to the planned construction of efficient, large and complex grass-root refineries, such as cracking and coking facilities, along with various expansion projects, refining expenditures in the Middle East and Asia are forecast to represent a combined 70% share of the world’s total spending.
“Elsewhere, the CAPEX for Latin America (including Mexico), Africa, the Former Soviet Union and the United States is forecast at 18%, 8%, 4% and 1% of the global total, respectively.”
China will be the largest single market with 17% of global CAPEX, correlating with 22% of all capacity additions up to 2020. Publisher attributes the country’s reasonable project costs to less expensive labor and the construction of large efficient refineries in areas with significant existing infrastructure, such as docks, pipelines and storage terminals.
By contrast, Africa will experience significantly higher production costs for its own new grass-root projects, which are planned in Nigeria, Angola and Gabon. These countries have a lack of highly-skilled workforces and minimal infrastructures, meaning that most, if not all, equipment, materials and labor will need to be imported.
Know more about this report at: http://www.marketresearchreports.com/globaldata/global-refining-capital-expenditures-forecast-over-300billion-new-capacity-line-2020
Senior Analyst, says: “Further costs for this region will also result from the financial and geopolitical risks associated with the construction of onshore refining facilities in African countries, such as Algeria and Uganda. These factors will push Africa’s refining CAPEX to almost $28 billion by the end of 2020.”
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