MOSCOW (MRC) -- Global oil refining capacity fell for the first time in 30 years last year, as new capacity was outweighed by closures, reported Reuters with reference to the International Energy Agency's (IEA) statement in its monthly oil market report on Wednesday.
Refining capacity was down by 730,000 bpd in 2021, the IEA said, but net additions were expected to amount to 1.2 MMbpd in 2022.
Global runs are forecast to rise by 3.7 MMbpd in 2022, the IEA added. Refinery throughput averaged 79.8 MMbpd in the fourth quarter of 2021, it added.
Over the last two years, about 900,000 bpd of refining capacity in Asia (excluding China) has been either shut or scheduled to permanently close before the end of 2022, the IEA said.
As MRC wrote previously, China's refinery output hit a fresh high in 2021, up 4.3% from a year earlier on robust fuel demand especially in the first half of the year, and as refiners ramped up processing to fill a supply gap after a hefty new tax closed loopholes in blending fuel imports. Total refinery throughput last year reached 703.55 MM tons, or 14.07 MMbpd, data from the National Bureau of Statistics showed on Monday, roughly 620,000 bpd above the 2020 level.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.