More Than $200 Billion Worth of Grassroot Refining Projects Under Development in Asia

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--Asia's refining developments have a total investment value exceeding $200 billion, according to Industrial Info, not including projects already under construction. This makes Asia the largest global region in terms of refining, with South America trailing distantly behind. Asia also represents the largest number of projects and investments in other industries including power and chemical processing, all of which is due to strong emerging and developing economies, particularly in East and Southeast Asia.

Countries in Asia have already focused on boosting the region's capacity, despite a lower demand growth. Next year, refiners could see lower profits due to slowing global demand and rapidly emerging capacity. Other established areas of Asia, including Japan and South Korea, are choosing to maintain or reduce capacity, rather than boost it, due to lower domestic demands. Export of refined petroleum products from South Korea reached an all-time high this year, surpassing exports of electronics.

Currently, there are 31 grassroot refinery projects under development in Asia, representing more than $200 billion in investments. Malaysia and India represent the largest numbers of projects at five each, though Iraq, China and Vietnam are also expecting multiple refineries. Developing refinery projects in these countries have an even spread of start dates from this quarter through to 2014, though several projects will take off next fourth quarter.

Two of the largest refineries on the books, clocking in at $20 billion each in Malaysia and Taiwan, are not due for completion until 2016 and 2017, respectively. Both refineries will have capacities of 300,000 barrels per day (BBL/d).

As of now, there are four grassroot projects under construction throughout China, India and Syria. One of these, currently in the finishing stages of construction in Punjab, India, is due for completion at the end of the year with a capacity 180,000 BBL/d. The rest are not due for completion until 2013 or 2014.

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