Insight
Which Asian refineries will buckle under margin pressure?
Report summary
The low-margin environment will put the existence of many weak refineries in Asia at risk. Many refineries will run at lower utilisation rates or choose to permanently shutter. In this insight we focus on Asia Pacific excluding China. We present the closure probability of refineries based upon a closure threat index incorporating the following: • Profitability • Degree of petrochemical integration • Recent and future investments • Upcoming major turnarounds • Upstream crude production integration • Carbon intensity • Ownership and age of asset Refineries that fall into the category of high risk are typically: • Less competitive with negative margins and lack complexity and scale • Located in mature markets such as Japan, Australia and New Zealand and cannot compete in the export market • With minimum or no integration with petrochemicals. Standalone assets will be first challenged in any lower margin environment • Weak refineries that are integrated with weak petrochemical assets
Table of contents
- No table of contents specified
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Insight
Coronavirus to further depress global LNG markets
We estimate Chinese LNG demand could be 2.5 - 6.3 Mt lower, creating a sustained drop in North Asian LNG, European and US gas prices.
$950
Insight
Saudi Arabia’s price push for oil market dominance in Asia
With fierce supply competition driving price discounts, Asia's refiners must take full advantage to maximise their margins.
$1,050
Asset Report
Kitadin Embalut coal mine
A detailed analysis of the Kitadin Embalut coal mine.
$2,550