Middle East refining expansion poised to transform global petroleum trade – EIA

The Middle East is set to significantly alter global petroleum trade dynamics with an expected increase in refining capacity, according to the latest US Energy Information Administration (EIA) Global Refining Outlook released on Wednesday.

By 2028, 11 new and expanded refinery projects will add approximately 1.3 million barrels per day (bpd) to the region’s processing capacity.

Recent additions like the 230,000-bpd Duqm refinery in Oman and the 615,000-bpd Al Zour refinery in Kuwait have already shifted trade patterns, leading to higher petroleum product exports and a reduction in crude oil shipments.

Meanwhile, upgrades at the UAE’s Ruwais refinery are enhancing its ability to process heavier crude grades and increase Murban crude exports.

In Iraq, new and refurbished refineries are contributing to the region’s growing capacity, despite some technical challenges. This expansion is expected to result in decreased crude oil exports and increased product exports.

Asia will likely remain the top destination for Middle Eastern petroleum products, though competition from new refining capacities in China and India, along with fluctuating European demand, may influence future trade dynamics.

Attribution: US Energy Information Administration (EIA) Global Refining Outlook

Subediting: Y.Yasser