The Middle East is poised to experience significant growth in crude distillation unit (CDU) capacity, representing over a quarter of global CDU capacity additions by 2030.

A new report indicates that this expansion is fuelled by increasing domestic demand for refined products, abundant crude reserves, and strategic investments in modernisation and expansion projects.

According to the report, Iran is set to dominate the region, accounting for nearly 40 per cent of the total capacity additions by 2030.

This surge is largely attributed to substantial investments in refinery modernisation, aimed at boosting export capabilities, particularly to Asian, African, and Latin American markets.

Key upcoming refineries, including Jask II, Bandar Jask, and Shahid Ghasem Soleimani, are expected to play a crucial role in driving CDU capacity additions.

The Jask II refinery is at the forefront of Iran’s CDU capacity additions, with a planned capacity of 600,000 barrels per day (mbd).

Petro Tejarat Shahin co-owns and will operate this refinery, which is currently in the front-end engineering design stage and is projected to commence operations in 2028.

Iraq is also expected to contribute significantly to the region’s CDU capacity growth, with nearly 1,919 mbd of capacity expected to be added by 2030.

Within Iraq, the Basra II refinery, owned and operated by South Refineries Co, is set to lead CDU capacity additions with 300 mbd, likely becoming operational in 2027.

Further details on global conventional refineries capacity and capital expenditure analysis can be found in GlobalData’s new report — ‘Conventional Refineries Industry to 2030 – Capacity and Capital Expenditure Outlook with Details of All Operating and Upcoming Refineries’.