Asia to gain $20b for new refineries<\/p>\n
SINGAPORE (AFP): Asia will gain substantial new oil refining
\ncapacity with about US$20 billion in \"firm\" investment expected
\nup to 1998, adding substantial new capacity in the region, an
\nofficial said yesterday.<\/p>\n
\"Total firm additions are estimated at 2.7 million barrels per
\nday and the greatest increases will occur in South Korea, China,
\nIndia, Japan and Thailand,\" said Andrew Speirs, U.S.-based Chem
\nSystems's general manager for East Asia.<\/p>\n
Speirs told an international conference on Asia's fuels and
\nlubricants here that about 80 percent of the increase will be in
\nmajor expansion of existing refineries, with only five new
\nrefineries to be established.<\/p>\n
He said the low level of firm Chinese refining expansions,
\nrelative to projected demand growth, \"reflects the uncertainties
\nthat exist in China with regard to the regulatory and legal
\nstructures that will define new investments.\"<\/p>\n
\"Despite many projects that are being studied, international
\ncompanies are taking a slow approach before committing to major
\ninvestments in China,\" Speirs told more than 250 officials from
\nthe downstream sector of Asia's oil industry attending the
\nconference.<\/p>\n
He said that while refiners in developed nations were
\nconcentrating on reducing costs by improving quality and output
\nfrom existing facilities, Asian refiners were focusing on
\nincreasing total volume of product output in response to the
\nregion's rapid growth for petroleum products.<\/p>\n
Refinery capacity in East Asia now exceeded that of both
\nEurope and America, Speirs said, adding that China, Japan, South
\nKorea, India and Indonesia would account for more than 70 percent
\nof the next decade's increase in product demand.<\/p>\n
Singapore, Asia's traditional refining center, was not
\nincreasing its refining capacity in line with the region but was
\nlikely to be the \"swing\" supplier, increasingly focusing on
\nhigher value petroleum products and petrochemicals, he said.<\/p>\n
Conference participants from more than 15 countries discussed
\nthe latest fuels and lubricants trends in the Asian region.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-to-gain-20b-for-new-refineries-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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