Brazil and Venezuela will be the major growth drivers of the refining industry in the South America, Central America and Caribbean regions, as they are set to add the most planned refining capacity among all the countries over the period 2018–2022, according to leading data and analytics company GlobalData.

The company’s report: ‘Refining Industry Outlook in South America, Central America and Caribbean to 2022’ states that in 2018, South America, Central America and the Caribbean will account for 7.5% of the total global refining capacity. The refining capacity in the three regions is expected to increase from 7,749 thousand barrels per day (mbd) in 2018 to 8,593 mbd in 2022. South America, Central America and the Caribbean are expected to have a combined estimated capital expenditure (capex) of US$24bn, of which, around 89% will be spent by Brazil and Venezuela, during the outlook period.

Among the countries in the three regions, Venezuela has the highest planned refining capacity additions. The country is expected to add a capacity of 490 mbd, thereby increasing the country’s total refining capacity from 2,031 mbd in 2018 to 2,521 mbd by 2022. The country is also the second highest in terms of capex spending, with $10.4bn expected to be spent during the outlook period.

Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, explains: “Venezuela is planning to start operations of two refineries by 2022. Of these, the Petrobicentenario refinery is crucial, as for the first time, it will help the country to export refined products from the feedstock of the massive Orinoco oil belt.”

GlobalData identifies Brazil as the second highest after Venezuela in South America, in terms of capacity additions, and the highest in terms of capex on new build refineries, with planned investment of $11bn to increase the refining capacity by 300 mbd, from 2,249 mbd in 2018 to 2,549 mbd by 2022.

Tejomoortula adds: “Petrobras is planning to construct a refinery in the state of Maranhao to meet growing demand of refined products in Brazil. The country is in talks with its foreign allies for construction of the refinery.”

The Bahamas is the third highest in terms of both capacity additions and capex spending, among the countries in the Caribbean, and South and Central Americas. The country will spend an estimated capex of $1.3bn on the new build refineries, which will further increase the refining capacity by 50 mbd between 2018 and 2022, should all the projects be realized.

In terms of capacity, Petrobicentenario, an announced coking type refinery in Venezuela will lead among the refineries in South America, Central America and Caribbean, with a capacity of 350 mbd in 2022. Maranhao II in Brazil, South America and East Grand Bahama in Bahamas, Caribbean, are the next top refineries in the three regions.

In terms of capex, Maranhao II refinery in Brazil will lead with the highest capex of $10bn during the period 2018 to 2022. Petrobicentenario in Venezuela and East Grand Bahama in the Bahamas follow with capex of US$9.7bn and US$1.4bn, respectively.

Information based on GlobalData’s report: Refining Industry Outlook in South America, Central America and Caribbean to 2022

ENDS

For expert analysis on developments in your industry, please connect with us on:

GlobalData Energy | LinkedIn | Twitter

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.