Refining & Petrochemicals Middle East
India to lead Asia liquids storage capacity growth: global data
India is expected to lead the liquids storage capacity growth in Asia, contributing about 23% of the total capacity growth between 2022 and 26. The country is likely to add 23.9 million cubic meters (mmcm) of liquids storage capacity by 2026, forecasts Globaldata, a leading data and analytics company.
In its report, ‘Global Liquids Storage Industry Outlook to 2026 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Terminals’, Globaldata reveals that Asia’s liquids storage capacity is expected to increase by 103.6 million cubic meters (mmcm) during 2022-2026. Out of the total capacity additions, 67.5 mmcm is likely to come from new build projects, and expansions of active projects contribute to the rest with 36.1 mmcm.
The global liquids storage capacity was 1,457,328 mcm in 202, and the market is projected to grow at an average annual growth rate (AAGR) of more than 2% during the forecast period.
The US, China, Japan, India, and South Korea are the major countries that accounted for more than 55% of the total liquid storage capacity of the world in 2021. Freeport V, West Hackberry, Zhoushan V, Big Hill, and Jurong Island II are the largest liquids storage terminals in the world.
Teja Pappoppula, Oil and Gas Analyst at Globaldata, says “India is expected to account for the total liquids storage capacity additions of 23.9 mmcm by 2026. Of these, 19.5 mmcm is likely to come from new build projects and the rest 4.4 mmcm would be from expansion projects. Most of these capacity additions are being planned to meet ever growing demand for crude and petroleum products in the country.”
Among the new build projects, the planned Chandikhol liquids storage terminal will be the largest with a capacity of 4.8 mmcm and is expected to become operational in 2025. The announced Bikaner liquids storage terminal stands next in India with capacity of 4.4 mmcm and is expected to be added in 2025.
The third highest contributor in the country is the planned Padur II terminal, which is likely to add a capacity of 2.9 mmcm in 2025. Indian Strategic Petroleum Reserves Ltd will be the operator of this liquids storage terminal.
India, which imports around 85% of its crude requirement has been taking up the issue of price volatility, bilaterally, with crude oil producing countries, with OPEC and others, and its strong preference for responsible and reasonable pricing for consumer countries.
It has held several rounds of negotiations with national oil companies of West Asia for favourable term contracts like inclusion of optional quantities in term contracts, enhancement of credit limit to oil PSUS in crude oil import, etc.
Indian government strongly believes that the pricing of liquid hydrocarbons should be reasonable and determined by market forces and has announced several initiatives to build strategic reserves to store crude.