New Refinery Projects to be Completed in 2011

abarrelfull wrote on 20 Dec 2010 13:36
Tags: 2011 be completed in new projects refinery to

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Unlike 2009 when 2 million barrels per day of extra refining capacity came on stream, and 2010, when less than one million did so, 2011 looks to be neither a bumper year, nor one of drought. By my calculations, about 1.46 million barrels of capacity will be completed during 2011.

In Europe, two small projects will be finished, each of them an expansion and upgrade of existing facilities. In Poland Gdansk refinery will grow by 90,000 bpd whilst in Romania Ploiesti Refinery will add 30,000 bpd.

In Russia, the first phase of the 140,000 bpd Tatneft Nizhnekamsk Refinery. Eventually this will be a highly complex one, but for now it is starting up as a hydroskimmer.

North America sees only one completion, Valero’s expansion of the Quebec Refinery in Canada by 45,000 bpd

The Middle East boasts one huge Project and two small ones. The giant is Iran’s Bandar Abbas Persian Gulf Star Refinery, built to process gas condensates. It will be 360,000 bpd, and is perhaps the only one of Iran’s new projects on course. Neighbours Iraq, will meanwhile complete the 70,000 bpd Basra refinery whilst Jordan will finish the 31,000 bpd expansion of Zarqa Refinery.

As always, Asia has the most activity.

In China, Quanzhou, Ningxia and Changling refineries will add 260,000 bpd. India meanwhile will see Mangalore Refinery, Guru Gobind Singh Refinery, and Vadvinar’s expansion all commissioned, a total of about 350,000 bpd. Pakistan’s Karachi refinery adds another 84,000 bpd

Overall, capacity will grow by a little more than demand. The likely closures will improve the situation for refiners somewhat, but the market will once again be a little demanding, and refinery margins in 2011, are unlikely to advance too much with this volume of new capacity additions.