Refining Capacities

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  1. Refining capacity creeps higher in 2003

    The worldwide refining industry added capacity in 2003, despite a decrease in the total number of refineries. For the second year in a row, worldwide refining capacity set a record. OGJ subscribers can now download free of charge the OGJ Worldwide Refining Report 2003 tables via these links - Click here to view the 2003 Worldwide Refining Survey Introduction. Click here to view the 2003 Worldwide Refining Survey details. Click here to view Worldwide Refining Capacities in PDF. Click here to vew the US Refining Capacities in PDF. Last year's refining report showed a worldwide capacity of 81.878 million b/cd in 722 refineries as of Jan. 1, 2003. This year, OGJ's survey reflects a total capacity of 82.055 million b/cd in 717 refineries, an increase of 177,000 b/cd. Capacity creep and expansions in existing refineries, along with the inclusion of one new refinery, fueled the increase in refinery capacity. The Middle East and North America showed the largest increases in refining capacity, 170,000 b/cd and 79,000 b/cd, respectively. South America and Western Europe had the next largest increases in capacity, 69,000 b/cd and 68,000 b/cd, respectively. Africa had a slight capacity increase. Asia and Eastern Europe showed a decrease in capacity. Asia lost 167,000 b/cd of refining capacity due to the shutdown of three mid-size facilities. Six refineries shut down since the last survey and one had shut down previous to last year's survey that was not yet recognized as such. New crude capacity The only new refinery that appears in this year's survey is the 30,000-b/cd Bosicor Refinery Ltd. plant in Hub, Pakistan. The $50-million refinery reportedly started up in September after a number of delays. The refiner plans to sell most of its products to Pakistan State Oil Co. A refurbished unit, previously owned by Tesoro Refining & Marketing Co., was used in the refinery's construction. The Paramount Petroleum Corp. refinery was accidentally deleted from last year's survey when it was incorrectly characterized as an asphalt plant. The 54,000-b/d refinery has been added back in to the survey. Refinery closures Primary crude refining capacity was shut down mainly in the US and Asia. Caltex (Philippines) Inc., a unit of ChevronTexaco Corp. is planning to spend $13.6 million to convert its Batangas refinery in the Philippines into a finished-products import terminal. The refinery, which has an 86,500-b/cd capacity according to last year's survey, will have a storage capacity of 2.7 million bbl. The new Batangas regional supply and distribution hub will import 100% of Caltex's products for distribution throughout the Philippines, ChevronTexaco said. Asian refining overcapacity, which has increased competition and depressed refining margins, spurred the changeover. ExxonMobil Corp. unit Mobil Oil Australia Pty. Ltd. shut down its 74,000-b/cd refinery in Adelaide, Australia, in late summer. Again, overcapacity in Asia refining and stagnant economic growth were cited as reasons for the shutdown. The company reported that the refinery will be mothballed to allow a future restart should the international refining business environment improve. Another Asia refinery casualty was the 76,000-b/cd Idemitsu Kosan Co. Ltd. refinery in Himeji, Japan. The company reported that the refinery was shut down to improve refining margins in its four other refineries and to clear excess capacity. In the US, two smaller refineries were shut down in Louisiana. OGJ discovered that the 30,000-b/cd Amercian International Refining plant in Lake Charles, La., is not currently operating. On a drive through Louisiana, OGJ Chief Editor-Exploration and Economics Editor Alan Petzet visited the plant site. He reported it to be deserted and the plant not operating. The company did not respond to calls from OGJ. The 30,000-b/cd Church Point refinery owned by Canal Refining Co. is not operating. According to the US Department of Energy's Energy Information Administration, Canal Refining has not reported capacity data since 1998. The 15,000-b/cd Société Congo-Italienne de Raffinage (Socir) refinery in Moanda, Zaire, was decommissioned. The company reported that the refinery will be used as a storage facility. An update to this year's survey includes a shutdown that occurred before 2003 but was not reflected in the survey. The 4,500-b/cd Addinol Mineralol GMBH refinery in Krumpa, Germany, shut down in 1998. Largest refining companies Table 1 lists the top 25 refining companies that own the most worldwide capacity. Table 2 lists companies with more than 200,000 b/cd of capacity in Asia, the US, and Western Europe. Capacities from Tables 1 and 2 include partial interests in refineries that the companies do not wholly own. Click here to enlarge image Significant changes from last year involve OAO Lukoil, OAO Yukos, Indian Oil Corp. Ltd., and Agip Petroli SPA. Lukoil and Yukos moved up considerably in Table 1 due to updated information from Mikhail Rudin, Russian Compliance Manager for Parsons E&C Group Inc. He told OGJ that Lukoil now owns the Ukhta and Kstovo refineries, previously owned by Komitek and Norsi Oil. These two refineries constitute more than 485,000 b/cd of refining capacity. Yukos now owns the 440,700-b/cd refinery in Angarsk, which was previously owned by the Russian Investment Co. Rudin also updated some of the capacities for the crude units and other processing units in Russian and former Soviet countries. Table 1 reflects capacity acquisitions by Indian Oil. The company purchased the Indian government's share of the Chennai refinery in Madras and the Bongaigaon refinery. The company already had a partial interest in these refineries; therefore, the net addition to overall refining capacity was just over 60,000 b/cd. Click here to enlarge image This occurred in 2001 but was not reflected in past reports. The acquisition also moved the company up in Table 2. Agip moved down a few spots in Table 1 due to the creation of a venture with ERG Group. The two companies have merged the 220,000 b/cd, former-Praoil (owned by Agip) refinery in Priolo with the 235,000-b/cd Isab SPA (owned by ERG) refinery. The renamed ErgMed refinery supersite is 72% owned by ERG and 28% owned by Agip. Table 2 shows that ChevronTexaco moved down a few spots in Asia. This is due to the previously mentioned shut down of capacity in the Philippines. The US portion of Table 2 shows many changes from last year's report. A number of sales occurred in the US. As mentioned in last year's report, ConocoPhillips was ordered by the US Federal Trade Commission to sell two of its smaller refineries when it was formed from the merger of Conoco Inc. and Phillips Petroleum Co. The 60,000-b/cd refinery in Commerce City, Colo., was sold to Suncor Energy Inc., Calgary, along with 43 retail stations for $150 million. The deal was finalized in August. Holly Corp., the owner of Navajo Refining Co. and Montana Refining Co., purchased ConocoPhillips' 25,000-b/cd Woods Cross, Utah, refinery on June 1. The total price was $25 million. Holly also backed out of its proposed merger with Frontier Oil Corp. reportedly due to risks associated with Frontier's potential liabilities. ConocoPhillips used some of its cash to purchase assets from Premcor Inc.'s 70,000-b/cd Hartford, Ill., refinery that was shut down last year. The company paid $40 million for the coker, crude unit, FCC unit, alkylation unit, isomerization unit, and a portion of the utilities and storage. ChevronTexaco dropped one spot in Table 2 after it sold its 90,000-b/cd El Paso refinery to Western Refining Co. LP. The sale for an undisclosed amount was completed on Aug. 29. Valero Energy Corp. acquired privately owned Orion Refining Corp.'s 155,000-b/cd refinery in Louisiana for $400 million plus $100 million in working capital. A US bankruptcy court approved the sale in late June, the approval being necessary because Orion had filed for Chapter 11 reorganization. The refinery, adjacent to the Mississippi River, is in St. Charles Parish 15 miles west of New Orleans. In April, Sunoco Inc. agreed to acquire El Paso Corp.'s Coastal Eagle Point refinery in New Jersey. The 150,000-b/cd refinery was sold for $130 million plus inventories. And, although the sale had not been finalized by late November, Sunoco believes that the acquisition will be completed by yearend 2003. Williams Cos. agreed to sell its 220,000-b/cd North Pole, Alas., refinery along with its interest in the Trans-Alaska Pipeline and 26 convenience stores to Koch Industries Inc. for $265 million. Koch subsidiary Flint Hills Resources LP will take over the refinery's operations. The agreement was not completed by yearend; therefore the 2004 survey will reflect the ownership change. In Western Europe, BP PLC agreed to sell its stake in Germany's Bayernoil refinery to OMV AG. BP sold 45% of the 262,000-b/cd refinery, along with pipeline and filling station assets, for about $380 million. After the deal, BP will still have a 10% direct interest in the refinery, in addition to an indirect interest of 25% through Ruhr Oel GMBH, its joint venture with Petroleos de Venezuela SA. A transaction that occurred in 2001 but was not reflected until this year's survey is the merger of the downstream activities of Royal Dutch/Shell Group with DEA AG. The joint venture gives Shell a share of an additional four refineries in Germany. Other changes in capacity that appear in Tables 1 and 2 are due to slight adjustments in declared capacity. Largest refineries Table 3 lists the world's largest refineries. Refineries moving up the list due to capacity expansions include ExxonMobil's Baytown, Tex., refinery, Shell Eastern Petroleum (Pte.) Ltd.'s Pulau Bukom, Sinapore, refinery, and BP's Texas City refinery. Click here to enlarge image A correction to Shell Nederland Raffinaderij BV's Pernis, Netherlands, refinery capacity puts it back in Table 3 after a 1-year absence. Other refineries in the table did not experience any capacity changes. Regional crude capacities Click here to enlarge image Table 4 lists regional process capabilities as of Jan. 1, 2004. As previously mentioned, the largest increases in crude capacity occurred in the Middle East and North America. Click here to enlarge image The Middle East growth was due to new information from Iraq. All the North American growth was due to capacity creep and the inclusion of a US refinery that was inadvertently left out of last year's survey. Click here to enlarge image South America increased capacity due to expansions in Brazil. Western Europe increased net refining capacity due to capacity creep and expansions in Belgium, France, Germany, Italy, the Netherlands, and the UK, which offset decreases in Greece, Sweden, and Turkey. Click here to enlarge image Africa had a slight capacity increase of 10,500 b/cd. Asia lost refining capacity due to the shut downs previously mentioned. Eastern Europe lost 53,000 b/cd. Processing capabilities Figs. 1-3 show the processing capabilities of Asia, the European Union (EU), and the US for the past 10 years. Processing capabilities are defined as conversion capacity (catalytic cracking and hydrocracking) and fuels producing processes (catalytic reforming and alkylation) divided by crude distillation capacity (% on crude). Countries in the EU include Belgium, Denmark, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, and the UK.

    Magazine Articles

    Magazine Articles

    Mon, 22 Dec 2003

  2. FGE-FACTS: Chinese, India expand refining capacities

    Refineries for national oil companies (NOCs) in China and India continued to expand capacities as 2010 closed. Japanese refiners, on the other hand, headed into a second round of capacity reductions.

    Magazine Articles

    Magazine Articles

    Mon, 27 Dec 2010

  3. Asian Refiners May See Relief On Margins As Capacity Additions Ease

    Comparing 1997 regional refining capacities [33127 bytes] Asia-Pacific refining complexity [55428 bytes] Singapore crude processing [34234 bytes] Distillation capacity [33996 bytes] Refining Capacity vs. Demand [34964 bytes] Singapore cross refining margins [75019 bytes] Continued weak Asian ...

    Magazine Articles

    Magazine Articles

    Mon, 7 Jul 1997

  4. Worldwide refining capacity creeps ahead in 2004

    The worldwide refining industry added capacity in 2004, despite a decrease in the total number of operating refineries. For the third year in a row, worldwide capacity is at a record level.

    Magazine Articles

    Magazine Articles

    Mon, 20 Dec 2004

  1. WRIGHT KILLEN: CLEAN AIR RULES COULD WIPE OUT 1.5 MILLION B/D IN U.S. REFINING CAPACITY

    Magazine Articles

    Magazine Articles

    Mon, 28 Dec 1992

  2. Shortage of crudes, not products, to drive Asian refining market

    National oil companies in China and India have continued to expand refining capacities as 2011 begins. Japanese refiners, on the other hand, are heading into a second round of capacity reductions.

    Magazine Articles

    Magazine Articles

    Mon, 7 Feb 2011

  3. COMMENT: Sanctions would help Iran solve its gasoline problems

    A close analysis of energy markets and refining capacities in Iran strongly suggests sanctions against gasoline sales to the country—such as have been proposed by bills passed by the US House last Dec. 15 and by the Senate on Jan. 28—would not be effective.

    Magazine Articles

    Magazine Articles

    Mon, 15 Feb 2010

  4. French refiners face shakeout with soaring costs, downturn

    Ste. Nationale Elf Aquitaine refinery at Grandpuits, France, is one of three the French state oil company owns in France. Photo by G. Houlbreque, courtesy of Elf. [43,688 bytes] French Refiners' Unleaded Project Outlays* [385,565 bytes] French Refining Capacities , 12-31-92 [451,483 bytes] Western ...

    Magazine Articles

    Magazine Articles

    Mon, 20 Sep 1993

  5. Middle East set to eclipse Asia in refining capacity growth

    The Middle East appears set to dominate the expansion of global refining capacity in the latter half of this decade, eclipsing Asia as projects there come on stream.

    Online Articles

    Online Articles

    Fri, 21 Oct 2011

  6. Middle East set to eclipse Asia in refining capacity growth

    The Middle East appears set to dominate the expansion of global refining capacity in the latter half of this decade, eclipsing Asia as projects there come on stream.

    Magazine Articles

    Magazine Articles

    Mon, 31 Oct 2011

  7. EIA sees impacts from idling half of Northeast's refining capacity

    Reduced refining activity in the US Northeast, as reflected in recently announced plans to idle more than half of the region’s refining capacity , is likely to affect product supplies, the US Energy Information Administration said.

    Online Articles

    Online Articles

    Tue, 27 Dec 2011

  8. EIA sees impacts from idling half of Northeast's refining capacity

    Reduced refining activity in the US Northeast, as reflected in recently announced plans to idle more than half of the region's refining capacity , is likely to affect product supplies, the US Energy Information Administration said.

    Magazine Articles

    Magazine Articles

    Mon, 9 Jan 2012

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