Refinery Coking Units - Global Market Analysis, Capacity Forecasts and Competitive Landscape to 2016

Additional Information

“Refinery Coking Units - Global Market Analysis, Capacity Forecasts and Competitive Landscape to 2016”, is the latest report from GlobalData, the industry analysis specialists, that offers comprehensive information on the Refinery Coking Market. The report provides information on the global and regional refinery coking capacities and also highlights the key issues and trends in the global refinery coking market. The research provides an in depth analysis of the global refinery coking market with focus on refinery coking capacity growth by key companies and countries across various regions globally. The report also highlights the coking operations of some key refining companies globally.

Middle East and Africa Planning to Expand Coking Capacity Aggressively

Despite possessing huge crude oil reserves, the Middle East and Africa have a limited presence in the global coking market. In 2010, the region had a coking capacity of 7.5 MMtpa, which was 2.5% of the global coking capacity. During the period 2005-2010, the coking capacity of the region increased at an average annual growth rate (AAGR) of 4.0%. This was largely due to relatively relaxed regulations for emission in the region.

However, with most oil producing countries in the region planning to emerge as leading petroleum product exporters, the number of complex refineries in the region have been increasing. By 2014, the Middle East and Africa is planning to triple its current coking capacity. During the period 2011-2016, the region’s coking capacity growth is expected to be at an AAGR of 24.9%, which would be the highest amongst all global regions.

Middle East and Africa, Coking Capacity, MMtpa, 2005-2016

Source: GlobalData, Oil and Gas eTrack, Refinery Capacity Database, Coking

Global Coking Market Will Remain Fragmented Until 2016

The global refinery coking market is highly fragmented as there is no absolute domination by any one country or company. In 2010, the global coking market consisted of 80 companies, 171 operational coking refineries across 37 countries from five regions, with a total coking capacity of 305.3 million metric tons per annum (MMtpa).

The top five companies worldwide accounted for 36.8% of the global coking capacity in 2010. Operations of three of these top five companies - ExxonMobil Corporation, ConocoPhillips and Valero Energy Corporation are spread across various countries, while the other two companies, China Petroleum & Chemical Corporation and Petrochina Company Ltd. have operations in China.

China, India and the US Continue to Drive Growth in the Global Coking Market

Since 2005, the global coking capacity has increased from 233.3 MMtpa to 305.3 MMtpa in 2010. Out of the total capacity addition of 72.0 MMtpa, China, India and the US has contributed 51.2 MMtpa of coking capacity. By 2016, the global coking capacity will touch 391.2 MMtpa, an addition of 85.9 MMtpa to the current capacity. The combined coking capacity of China, India and the US will increase by 46.7 MMtpa (54.3% of the total global coking capacity addition) by 2016.

China, India and the US, Combined Coking Capacity Comparison With Global Capacity, MMtpa, 2005-2016

Source: GlobalData, Oil and Gas eTrack, Refinery Capacity Database, Coking

Recent Global Economic Slowdown Had Mixed Impact on Global Coking Markets

The recent economic recession had a mixed effect on the overall coking market; a few refining companies have registered lower profit margins due to less demand for petroleum products. There were also a few refineries in the US and Europe that shut down or operated at a decreased capacity during the recession. In Europe, Kherson Refinery stopped its refining operations in 2006, and Neftekhimik Refinery stopped its coking operations between 2010 and 2011. Both of these refineries are located in Ukraine. In the US, Delaware Refinery stopped its operations between 2009 and 2010 and Yorktown Refinery stopped its operations in 2009.

Despite this, on a global scale, the total global coking capacity saw a comfortable capacity addition of 35.7 MMtpa during the period 2008-2010. While countries from North America and Europe faced the maximum heat of the recession, Asia Pacific and South and Central America posted comfortable coking capacity growth. During the period 2008-2010, Asia Pacific achieved 20.5 MMtpa capacity growth and South and Central America achieved 5.9 MMtpa capacity growth.

Growth in Global Coking Market Propelled by Growing Demand for High Quality Petroleum Products

Globally, most nations are moving towards cleaner fuels and are imposing stringent emission standards for companies that produce fuel. The drive towards cleaner fuels coupled with increasing demand for petroleum products is driving the growth of the global refinery coking market. In most countries, stringent norms are being brought into force for oil combustion and emission, in addition to environmental regulations. This is mandating oil refining companies to install complex refineries with different secondary conversion units that are capable of refining heavy and sour crude oil to produce higher quality petroleum products.