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China is expected to lead Asia’s refinery vacuum distillation unit (VDU) capacity additions by contributing about 36% of the regions’ total VDU capacity additions between 2021 and 2025, says GlobalData, a data and analytics company.

The company’s report, Global Refinery Vacuum Distillation Units (VDU) Outlook to 2025 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Vacuum Distillation Units, reveals that China is expected to develop new-build refineries with a total VDU capacity of 298 thousand barrels per day (mbd) by 2025.

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Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments, “In China, two new-build VDU refineries are likely to start operations by 2025, of which Gulei is a planned one with identified development plans and the remaining Panjin II is an announced refinery. Gulei and Panjin II are expected to start operations in 2022 and 2024 with VDU capacities of 154 mbd and 144 mbd respectively.”

GlobalData expects India to be the second-highest contributor to the Asia’s refinery VDU capacity additions by 2025 with a total refining capacity of 216 mbd by 2025. The Barmer refinery account for the entire new-build capacity additions in India, with a capacity of 96 mbd. Mumbai I refinery is the only expansion project in India with a capacity of 120 mbd.

Indonesia is expected to add third largest refinery VDU capacity additions in Asia with 192 mbd of capacity expected to be added by two announced refineries by 2025. The Tuban II refinery accounts for most of the capacity additions in the country with 144 mbd of capacity expected to be added in 2025.

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