The energy landscape is rapidly evolving, with emerging markets driving significant growth in the global refining industry. From 2025 to 2030, the conventional refining sector is poised for expansion, fueled by rising energy demands and strategic investments in refining infrastructure. GlobalData, a leading provider of data and insights, forecasts a surge in capacity additions of crude distillation units (CDUs) worldwide during this period, with Asia spearheading this growth trend.
- Asia Takes the Lead: According to GlobalData, Asia is projected to lead the pack in CDU capacity additions through 2030, with an estimated 8.87 million barrels per day (mbbl/d) to be added. This surge in capacity is driven by the escalating energy demands of countries like China, India, Pakistan, and Indonesia, fueled by growing populations and expanding economies.
- India’s Ascendancy: Among Asian nations, India is expected to witness the highest CDU capacity additions, with 2.36mbbl/d of capacity slated for addition by 2030. The upcoming CDU expansion project at the Vadinar refinery in India, boasting a capacity of 515,000 barrels per day, stands out as a major contributor to this growth trajectory. Scheduled to commence operations in 2026, this project underscores India’s commitment to enhancing its refining capabilities.
- China and Pakistan Rally: Following closely behind India, China is identified as the second-highest contributor to CDU capacity additions in Asia, accounting for approximately a quarter of the region’s total additions by 2030. Notable projects like Caofeidian V, with 401,000 bpd of CDU capacity slated for addition in 2029, underscore China’s proactive approach to refining infrastructure development. Pakistan also emerges as a key player in the region, with projects like the Larkana refinery leading in upcoming CDU capacity additions, emphasizing the nation’s role in shaping the Asian refining landscape.
As Bhargavi Gandham, oil and gas analyst at GlobalData, aptly summarizes, "Several Asian nations are actively investing in the modernization and expansion of their refining infrastructure to bolster energy security and refining efficiency, propelling CDU capacity additions in the region." The collective efforts of these nations reflect a broader commitment to meeting the evolving energy demands of the future.
In conclusion, the conventional refining industry is poised for substantial growth in the coming years, with Asia at the forefront of this transformation. By prioritizing infrastructure development and capacity expansions, these nations are laying the foundation for a sustainable and robust energy landscape tailored to meet the needs of tomorrow.
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