Refinery projects to focus on distillates through 2040 – EIA

15 April 2013 20:09  [Source: ICIS news]

HOUSTON (ICIS)--An increase in diesel fuel consumption will lead to a shift in refinery utilisation and investments in the US, a government agency said on Monday.

Stricter gasoline efficiency standards and regulations requiring increased use of ethanol in gasoline will cause consumption of diesel fuel to increase by 800,000 bbl/day from 2011 to 2040, while finished motor gasoline consumption will fall by 1.6m bbl/day, according to the US Energy Information Administration (EIA).

In its Annual Energy Outlook, the EIA said as “some smaller and less-integrated refineries begin to idle capacity as a result of higher costs, new refinery projects focus on shifting production from gasoline to distillate fuels to meet growing demand for diesel.”

Furthermore, no new petroleum refinery capacity expansions will be built through 2040, and about 200,000 bbl/day of refinery capacity will be retired.

The increase in diesel production will have a major impact on petroleum refinery operations.

According to the outlook, the ratio of gasoline to diesel production at refineries will decline from 2.3 in 2012 to 1.6 after 2035.

Refinery utilisation of fluid catalytic cracking (FCC) units is expected to drop from 83% in 2011 to 62% in 2040, the EIA said.

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By: Anna Matherne

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