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The Middle East’s Strategic
Expansion of Refined
Products Exports

This region is witnessing a unique combination of consistently high local
demand growth, secure feedstock supplies, dominant NOC investors and
a shift from crude oil to refined product exports. These trends suggest
that it will remain detached from the economic woes overshadowing the
international refining business for the foreseeable future

M. Rhodes
Technical Editor

Ongoing construction A lready a leader in crude oil exports, increase by nearly 2 MMbpd
the Middle East (ME) is making through 2020, exceeding 10
at the 3 MMtpy Sadara a deliberate move to increase its MMbpd, despite potential
participation in the refined and delays in the commissioning
complex (left), winner of petrochemical products markets. of several projects [1].
It is likely that the ME will continue Incremental products output
HP’s Top HPI Projects of to add downstream projects. Refining capacity from new refinery capacity is
will center on domestic demand and export expected to outpace demand
2014, Petrochemical. (Photo opportunities to Asia-Pacific (AP) and Europe. growth in the region, resulting
The ME refining industry varies greatly from other in higher net product exports.
courtesy of Sadara Chemical regions, as exemplified by its average utilization Some products are expected
rates, which generally run at maximum and regularly to be absorbed domestically
Co.); the Qatofin project in exceed 90%. Since 87% of the approximately 8 as the region moves into compliance with tighter
MMbpd of existing refining capacity is owned by environmental fuel regulations, such as the Euro 4
Qatar (right) includes one of national oil companies (NOCs), refining margins and Euro 5 quality standards.
do not play a significant role in operations. These Traditionally, ME refineries have had simple
the world’s largest ethane NOCs process their own crude oil and condensate, configurations and high fuel oil yields, partly due
and they operate to meet growing domestic to strong power generation requirements. This
crackers. (Photo courtesy demand and strategic objectives to expand refined condition is changing; a new generation of highly
product exports. complex plants, combined with upgrades at existing
of Total Petrochemicals The region’s overall refining capacity is forecast to refineries, is radically altering the product mix. New
unit configurations include hydrocracking, catalytic
France) cracking and hydrotreating capacities designed
to minimize fuel oil output and maximize middle
distillate, diesel and gasoline production.

Refinery integration

The ME is transforming its downstream business
to be both vertically integrated across the value
chain and horizontally integrated across suitable
geographies.
The goal is to add greater value to hydrocarbon

Impiantistica Italiana - Luglio-Agosto 2015 27