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‘Iraq to contribute 38 per cent of Middle East’s CDU capacity growth by 2023’

Petrochemicals

Iraq is set to drive crude distillation units (CDUs) capacity growth in the Middle East from planned and announced (new-build) projects between 2019 and 2023, contributing around 38 per cent of the total growth, according to data and analytics company GlobalData

The company’s report, ‘Refining Industry Outlook in Middle East to 2023 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Refineries’, reveals that Iraq is expected to have new-build CDU capacity of 1,200 thousand barrels of oil per day (mbd) by 2023.

Varun Ette, oil and gas analyst at GlobalData, commented, “In Iraq, 10 planned and announced refineries are expected to start operations from 2019-2023. Of these, Basra II has the highest CDU capacity of 300 mbd. The Basra II refinery is expected to start operations in 2023.”

Following Iraq, Kuwait is another major country in terms of CDU capacity growth in the Middle East with 615 mbd. The Al-Zour refinery, which is expected to start operations in 2020, accounts for the entire capacity additions in the country.

Saudi Arabia is also expected to witness complete CDU capacity additions from one refinery – Jizan. The refinery is expected to start operations in 2019 with a capacity of 400 mbd.

In Oman, two refineries – Duqm I and Sohar Bitumen ­– account for the entire capacity additions. Of these, Duqm I accounts for most of the capacity additions with 230 mbd.

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