Industry group says declining margins prompts delays while another 26% of projects cancelled
Fifty-one percent of new refinery projects, representing 2.594 million barrels a day of capacity, in OAPEC countries have been delayed because of declining margins, according to the industry group.
Twenty-six percent, or 1.315 million barrels a day, of scheduled new capacity has been cancelled, Imad Makki, senior refining expert at the Organisation of Arab Petroleum Exporting Countries, said at the Global Refining Summit in Rotterdam.
Only 23 percent, or 1.2 million barrels a day is under construction, he said.
The figures, compiled by OAPEC’s research department, are as of January this year, Makki said.
Delays are also being caused by lower demand during the economic slowdown and fluctuating material costs, he said.
In Saudi Arabia, the Yanbu and Jubail refinery projects are under construction, he said. The plants each have a planned processing capacity of 400,000 barrels a day.
OAPEC’s 11 members comprise Algeria, Bahrain, Kuwait, Libya, Syria, UAE, Egypt, Iraq, Qatar, Saudi Arabia and Tunisia, according to the group’s website.
Seven of them also belong to the Organisation of Petroleum Exporting Countries.