Asia Pacific Refined Petroleum Products
market is expected to grow at a steady pace during the forecast period,
2024-2028. Energy consumption will expand as a result of factors such as
population growth and rapid urbanization, driving the market for refined
petroleum products forward throughout the forecast period. The market will grow
as a result of rising demand for refined petroleum products such diesel,
gasoline, aviation fuel, kerosene, and others. The market's reach will also be
expanded by the expanding automotive and aviation sectors, as well as by rising
demand for goods such as lubricants, diesel, and gasoline.
The petrochemical industry remains the largest
source of oil demand growth. Throughout the period of 2019 to 2026, the
combined demand for ethane, LPG, and naphtha is anticipated to increase by 430
kb/d annually on average, with petrochemical feedstocks accounting for more
than two-thirds of this increase. LPG and naphtha will make up approximately
70% of gains over 2019 levels, with demand growth for all other products
declining overall.
Imports of refined petroleum products by
organizations (partnerships or sole traders) that process crude petroleum into
refined goods such as diesel fuel, gasoline, liquefied petroleum gas, naphtha,
and others form the market. Petroleum refineries are enormous industrial
buildings with extensive pipeline networks connecting sub-processing units and
conveying refined products and crude oils.
The market for refined petroleum products is made
up of companies (organizations, sole proprietors, or partnerships) that refine
petroleum into goods such as gasoline, naphtha, diesel fuel, and liquefied
petroleum gas and then market those refined goods. Petroleum refineries are
substantial industrial complexes with extensive pipeline systems connecting
their various sub-processing units with crude oil and refined petroleum
products. The value of the various refined petroleum products is reflected in
this market's revenues.
Rising Demand of Refined Petroleum Products as
Raw Material
The three different parts of the oil and gas
industry are upstream, midstream, and downstream. Light or heavy petroleum is
evaluated and priced using density and sulphur content. A midstream process may
involve refining crude oil to create refined petroleum products. In order to
create petroleum products with a high market price, petroleum is also taken
from the bottom and delivered via pipelines to petroleum refineries. The market
for refined petroleum products comprises of companies that refine crude oil
into refined petroleum products including gasoline, naphtha, diesel oil, and
liquefied petroleum gas and then market those refined products. The vast
industrial complexes known as petroleum refineries contain enormous pipeline
networks for transporting crude oil and refined petroleum products between
processing units.
Products made of oil and gas are delivered to
stores. The companies that turn crude oil into refined petroleum products such
as gasoline, naphtha, diesel oil, liquefied petroleum gas, etc. are within the
refined petroleum products industry. According to the demands of the buyer,
refineries remove the value addition from those items to make them marketable.
To reduce CO2 emissions into the climate, refineries are increasingly utilizing
carbon capture and storage systems.. In recent years, there has been a
substantial growth in the use of motor gasoline in the automobile sector. The
consumption of liquefied petroleum gas (LPG) is expanding rapidly in emerging
nations, pushing the market for these goods. Furthermore, nations throughout
the world are increasingly employing carbon capture systems to limit CO2
emissions in their area.
Growing Use of Renewable Energy Sources &
Rising Transportation Sector
The expanding usage of renewable energy sources is
a key factor in the market's expansion. As a result, some industrial sectors
that use petroleum products and are deemed to be major contributors to global
warming have been shut down. Moreover, a number of nations and organizations
around the world have set ambitious goals for renewable energy to raise their
share of the global energy mix. Market expansion was also constrained by the
production of hazardous waste and the discharge of carbon-based pollutants from
petroleum refineries and treatment facilities.
A further factor driving the need for jet fuel and
kerosene is the expanding global transportation industry, particularly in
emerging countries. Governments in emerging nations, including India, intend to
build new refineries over the next ten years to boost their capacity for
refining to up to 450-500 million tonnes (MT) to meet growing demand. For
instance, Indian Oil stated in January 2021 that a new refinery would be built
in Nagapattinam, Tamil Nadu. The refinery will have a 9 million metric tonne
annual refining capacity. A massive refinery and petrochemical complex will be
built in India as part of a USD 44 Million investment announced in April 2018
by Saudi Aramco and Abu Dhabi National Oil Company (ADNOC). These factors are
anticipated to fuel market growth throughout the anticipated timeframe.
Automobile Industry Used Massive Amount of Refined
Petroleum Products
The automobile sector has grown significantly in
recent years, as have maritime developments. The aviation business has
developed along with the rise in air travel, and the use of LPG as a
petrochemical feedstock in the chemical industry has expanded with the
introduction of new goods. Examples of products made from refined oil include
diesel, gasoline, kerosene, aviation fuel, and other products. These factors
have raised demand for commodities such as diesel, gasoline, lubricants, and
other items, which directly expands the market for refined oil-based goods and
helps to build new treatment facilities.
Technological Advancement
Gas-to-liquid technology, which produces
high-quality petroleum products, is now being used by businesses to reduce
pollution. Gas to liquid technology is the process of converting natural gas
into premium liquid products including waxes, naphtha, diesel, and motor oils
for use as transportation fuels. Natural gas is used instead of crude oil in
this process because it burns more cleanly than any other fossil fuel and is
widely available, flexible, and reasonably priced. The byproducts created by
GTL (gas-to-liquids) technology have no smell, no color, and few pollutants.
This method has been employed by companies such as Shell, Chevron, and Petrosa
to produce byproducts that may be used to generate polymers, detergents, and
cosmetics as well as transportation fuels, oils, and other products.
The expanding usage of renewable energy sources is
a key factor in the market's expansion. As a result, some industrial sectors
that use petroleum products and are deemed to be major contributors to global
warming have been shut down. Moreover, a number of nations and organizations
around the world have set ambitious goals for renewable energy to raise their
share of the overall energy mix. The generation of hazardous waste and the
release of carbon-based pollutants from petroleum refineries and treatment
facilities further restrain market growth.
Recent Developments
- Sri
Lanka's state-run oil company, Ceylon Petroleum Corporation, was awarded
contracts in October 2021 to provide Vitol Pte Ltd with 1.8 million
barrels of diesel and 1.4 barrels of petrol from January 2022 to August
2022. The agreement to supply 1,341,000+10/-5% barrels of gasoline will
last for 8 months, while the arrangement to deliver 1,137,500 +10/-5%
barrels of diesel will run from January 1, 2022, to August 31, 2022.
- India's
primary energy consumption is expected to nearly double to 1,123 million
tonnes of oil equivalent by 2040, according to the IEA (International
Energy Agency). India is the second-largest oil refiner in the continent
as of September 2021, with a capacity of 248.9 MMTPA. At the time, 35% of
the nation's refining capacity was owned by private companies.
- Magellan
Midstream is a master limited partnership that transports, stores, and
distributes refined petroleum products such as gasoline and jet fuel. The
firm is in charge of operating the longest refined petroleum products
pipeline system in the nation, with a total length of 9,800 miles, 54
terminals, and a storage capacity of 47 million barrels. About 72% of its
revenue comes from refined items, and the remaining 28% comes from
services related to crude oil.