Asia will continue to dominate global refinery alkylation capacity additions through 2028

Asia is set to witness the highest refinery alkylation capacity additions among all the regions between 2024 and 2028, contributing about 48% of the total global capacity additions by 2028, says GlobalData, the data and analytics company.

GlobalData’s latest report, Refinery Alkylation Units Capacity and Capital Expenditure Outlook and Forecast with Details of All Operating and Planned Alkylation Units to 2028, shows that Asia is expected to see total alkylation capacity additions of 176 thousand barrels per day (mbd) during 2024-28. Of this, 125mbd of capacity is likely to be added from new-build refineries, while the rest is from the expansion of existing refineries.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, comments: “China and India lead in terms of alkylation unit capacity additions in Asia, jointly accounting for around 54% of the total capacity additions in the region by 2028. Growing demand for high octane gasoline is mainly driving alkylation unit capacity additions in these countries.”

The upcoming alkylation unit expansion project at the Vadinar refinery in India is the largest upcoming alkylation project in Asia, with an expected capacity addition of 32mbd in 2024. In China, Gulei is the largest upcoming new-build refinery, with an alkylation capacity of 10mbd in 2025.

GlobalData says that the Middle East is another significant contributor to the global alkylation capacity additions, accounting for 25% of the total additions by 2028. Iran and Iraq lead alkylation capacity additions in the Middle East, with a combined 62mbd of capacity expected to be added by 2028.

Africa follows the Middle East, accounting for 17% of global alkylation capacity additions by 2028. Nigeria, Egypt, Angola, and South Africa account for the majority of the capacity additions in the region, with about 70%.