Secondary capacity additions
Secondary processing projects are running at significant levels relative to distillation, but even higher proportions are needed longer term
Current firm secondary unit projects to 2021 are significant, with conversion at 41% of new distillation capacity, desulphurization at 70% and octane units at 18.3%. These ratios are remarkably similar to those for the 2016 global base capacity. Over the long-term, however, higher proportions of secondary processing are needed; from 2016–2040, conversion additions are close to 60% of distillation additions, desulphurization are over 100% and octane units are at 25%. These are the result of the need to deal with the long-term decline in residual fuel demand, complete the shift to ultra-low sulphur (ULS) standards for gasoline and diesel worldwide, and meet a gradual increase in octane levels driven by fuel efficiency standards.