Page 4 - DMEA Week 27 2022

DMEA COMMENTARY DMEA

OPEC members provide

refining capacity update

The release this week of OPEC’s Annual Statistical Bulletin made for interesting reading,
though the capacity numbers provided little more than guidance, as units remain inactive.

OPEC THE release this week of the 2022 OPEC Annual The predominantly state-owned oil firm has
Statistical Bulletin included overview data of deals in place that will give it a net international
refining capacity among member states. How- refining capacity of 1.685mn bpd once projects
WHAT: ever, rather than providing an accurate picture including the 300,000 bpd Pengerang Petro-
OPEC data suggests that of OPEC refining activity in 2021, the data offers chemical Co. (PRefChem) facility in Malaysia
member state refineries’ a best-case scenario processing level, once major and the Huajin Aramco Petrochemical Co.
full capacities have overhaul and expansion projects have been (HAPCO) plant of the same size at Panjin in
been available, though completed. north-eastern China.
the active figures are The report suggests that total OPEC refin-
significantly lower. ing capacity increased from 12.202mn barrels Iran
per day in 2020 to 12.915mn bpd in 2021. Saudi Meanwhile, OPEC said that Iran’s refining
WHY: Arabia and Iran remain the two key markets in capacity was 2.2mn bpd during 2021. While rep-
Member states have the Middle East and Africa, though Iraq saw the resenting a significant rise over the past decade,
long relied on direct biggest annual growth in capacity. the increase is only a small part of a much larger,
crude oil sales to prop planned expansion.
up their economies, but Saudi Arabia This showed that refining capacity had effec-
controlling downstream The report showed that Saudi refining through- tively remained flat between 2020 and 2021, sit-
when your feedstock is at put capacity had risen to 3.327mn bpd, up from ting at 2.202mn bpd. Meanwhile, this represents
a price you control is too 2.927mn bpd a year earlier thanks to the addi- a rise of 480,000 bpd compared with capacity in
good an opportunity to tion of the 400,000 bpd Jazan refinery on the 2011, which was just 1.715mn bpd.
pass up. Red Sea coast. However, a research note from The IGM Energy research note said that
consultancy IGM Energy clarified that capacity during Q1, installed crude oil and condensate
WHAT NEXT: at year-end was 3.127mn bpd as Jazan continued refining capacity had expanded to 2.235mn bpd,
The broad direction to operate at around 50%. though this noted that at least 130,000 bpd was
of refining capacity’s “Operations at Jazan ramped up during the inactive.
travel is unmistakeably first half of 2022 and the facility is now operating However, that increase still falls short of the
upwards as major oil at around 55%, giving Saudi Arabia a total refin- target set by the National Iranian Oil Refining
producers move to have ing capacity of 3.147mn bpd across NOC Saudi and Distribution Co. (NIORDC) in 2019 of
more control over how, Aramco’s nine wholly owned and domestic joint achieving a refining capacity of 2.4mn bpd by
where and in what form venture refineries,” the note said. March 2020.
their crude is sold. Aramco is understood to be working to The country’s largest refinery is the 400,000
increase Jazan’s processing capabilities through bpd Persian Gulf Star Refinery (PGSR), which
the addition of gasifier units at the plant this year processes condensate from the supergiant off-
and hopes to reach capacity in 2023. shore South Pars gas field. Phase 1 was officially

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