BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

IF you are a Platts Market Center subscriber, to reset your password go to the�Platts Market Center to reset your password.

In this list
Oil

More refineries at risk of closure in Europe, new capacities elsewhere: Platts summit

Metals | Steel

S&P Global Platts to launch seaborne iron ore brand assessments

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

Commodities | Energy | Oil | Crude Oil

North American Crude Oil Exports Summit

Oil

Total eyes deepwater expansion to 2025, scope for new projects

More refineries at risk of closure in Europe, new capacities elsewhere: Platts summit

Brussels — There is a risk of more refinery closures in Europe once the initial impact of the IMO sulfur cap regulation on marine fuel is digested, while elsewhere in the world new capacities are coming on stream, delegates at the S&P Global Platts European Refining Summit in Brussels said Friday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Up to 800,000 b/d of refining capacity is at risk in Western Europe and this will dominate the environment in Europe after the IMO regulation comes into force if there is a prolonged period of low hydroskimming margins, said Giacomo Romeo, a senior analyst at Macquarie.

More refinery consolidation and potential closures in Europe was a view shared by several other delegates.

Meanwhile, others regions are set to see capacity increases and rising utilization.

By 2030, 50% of global refining runs would come from Asia, Macquarie's Romeo said, although China will see deteriorating utilization rates "reflecting policy changes."

However there will be more capacity increases in the Middle East, Romeo said.

Greenfield projects are also underway in Africa, according to delegates.

ADDITIONAL CAPACITY IN MIDDLE EAST

"The future is that major crude exporting countries are adding refining capacity," said Abbas Al-Naqi, secretary general of the Organization of Arab Petroleum Exporting Countries.

By 2022, Arab countries will add about 2.1 million b/d of refining capacity in order to satisfy growing domestic and global demand.

Those include Al-Zour in Kuwait, Karbala, Missan and Nasiryia in Iraq, Jazan in Saudi Arabia, as well as new capacity in Algeria and Fujairah and expanding capacity in Egypt -- Sitra and Sohar.

Refiners in the Arab petroleum exporting countries have already invested in building more complex refineries to produce higher-profit products, such as Satorp, Yasref and Ruwais.

The current refining capacity of OAPEC members is 8.09 million b/d, with 51 refineries. Along with 0.771 million b/d in other Arab countries, that represents around 10% of the current global refining capacity of 92.02 million b/d, said Abbas Ali Al-Naqi.

There are also major upgrades underway as refineries in the region still require additional hydrotreating and naphtha reforming processes to enable conversion of low value products into higher value products.

--Elza Turner, elza.turner@spglobal.com

--Edited by Jonathan Fox, jonathan.fox@spglobal.com