The global conventional refining industry is poised for substantial growth between 2025 and 2030, driven by rising energy demands from emerging markets and strategic investments in refining infrastructure.
According to a new report by GlobalData, capacity additions of crude distillation units (CDUs) are accelerating worldwide, with Asia projected to lead these expansions across all regions through 2030.
The report indicates that Asia is expected to add a staggering 8.87 million barrels per day (mbbl/d) of CDU capacity between 2025 and 2030.
The Middle East and Africa are projected to follow with 6.21mbbl/d and 5.31mbbl/d, respectively.
Bhargavi Gandham, oil and gas analyst at GlobalData, commented on the driving forces behind this expansion, stating: “The increasing energy demand, driven by expanding populations and economies, especially in China, India, Pakistan, and Indonesia, is anticipated to propel capacity additions in CDU across Asia.”
India is projected to witness the highest CDU capacity additions in Asia, with 2.36mbbl/d of capacity expected to be added by 2030.
The CDU expansion project at the Vadinar refinery in India, with a capacity of 515,000 barrels per day (bpd), stands as the largest upcoming CDU refinery in the country in terms of capacity additions in 2025–30.
Operations are slated to commence in 2026. Other notable refineries, including Haldia III, Panipat, and Paradip, are also expected to contribute significantly to capacity additions during the outlook period.
GlobalData identifies China as the second-highest contributor to CDU capacity additions in Asia, accounting for approximately a quarter of the region’s capacity additions by 2030.
Among the upcoming CDU projects in China, Caofeidian V leads with 401,000bpd of CDU capacity to be added in 2029.
Pakistan ranks third, contributing around 15 per cent of the region’s total CDU capacity additions during the outlook period, with the Larkana refinery leading in terms of upcoming CDU capacity with 400,000bpd.
Gandham concluded: “Several Asian nations are actively investing in the modernisation and expansion of their refining infrastructure, aimed at strengthening energy security and improving refining efficiency.
“These initiatives are expected to drive CDU capacity additions in the region.”
GlobalData’s latest report, titled Conventional Refineries Industry to 2030 – Capacity and Capital Expenditure Outlook with Details of All Operating and Upcoming Refineries, provides a comprehensive overview of the industry’s future.
