Asia to account for more than half of new refining capacity

The Asia-Pacific region will account for more than half of the 7 million barrels per day of greenfield refining capacity due to be built between now and 2011, according to Chevron Global Refining President Jeet Bindra. But analysts are already warning that rising imports from the Middle East could tip the region’s product balance into a surplus and undermine refining margins in the region’s rapidly expanding market. Bindra, speaking at London’s Institute of Petroleum (IP) Week in February, said higher costs and tougher regulations mean far fewer new refineries would be built in OECD (Organization for Economic Cooperation and Development) countries and more in Asia and the Middle East. (March 5, 2007)