Africa Plans to Grow Refining Capacity

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Even though Africa has significant oil reserves, lack of refining infrastructure has meant that the continent still ends up importing a significant portion of its petroleum product demand. As tracked by Industrial Info, total operational African refining capacity sits at 2.5 million barrels per day (BBL/d), against an overall petroleum products consumption need of 4.43 million BBL/d -- a shortfall of almost 2 million BBL/d.

Furthermore, factors like poor management, lack of efficiency and a highly uncertain political scenario have meant that even capacities at operational refineries remain underutilized -- leading to higher imports and vulnerability to global price rises.

Recent years have seen positive efforts by establishments in Africa aimed at reducing this misalignment. Industrial Info is tracking 40 new refineries that are being planned in Africa, which account for more than 4 million BBL/d of incremental crude refining capacity. Out of this, nearly 2 million BBL/d across 24 refineries are being planned in Nigeria alone.

However, it remains to be seen how much of this planned development actually reaches fruition. As being tracked by IIR, out of the 40 planned refineries, 32 are still in an early planning phase with eight under construction or in the engineering process. These eight represent more than 1 million BBL/d in crude refining capacity that is expected to start operations over the next four years.

Given the significant bureaucratic hurdles and geopolitical challenges that the region faces, delays in construction starts are fairly standard. 16 of the planned refineries being tracked, have seen kickoff delayed by three years or more. These represent almost 30% of the total planned capacity for the region. Some have been delayed by upwards of 10 years and are still not showing any signs of moving forward.

While these upcoming refineries are set to ease the burden of imports on Africa's shoulders and will play a significant role in stabilizing the high prices of petroleum products, a considerable portion of the intended development remains at an early stage, implying that substantial delays can be anticipated.

Industrial Info is tracking more than 360 capital refinery projects in Africa, valued at nearly US$69 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for related reports.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).