Story By Ali Ahmed |Insider Monkey| In this article, we will be covering the top 20 largest refineries in the world. If you want to skip our detailed analysis of the global oil and gas industry, you can go directly to the Top 5 Largest Refineries In The World.
Refineries play a vital role in the world’s energy market as well as the oil and gas industry by transforming crude oil into valuable products such as, diesel oil, petrol, kerosene, and liquefied petroleum gas. Oil has been the most important energy source for decades now and refined oil can be an extremely valuable export.
It can be tremendously beneficial for a country to have a supply of refined oil products so they are not dependent on foreign sources of energy. Instead, a country producing oil can create jobs, attract foreign investments, and even export oil in exchange for a significant source of foreign revenue.
In one of our previous articles, we looked at 15 countries with the largest refining capacity. In this article, we will be looking at the top 20 largest refineries in the world, but first let’s take a look at the oil and gas industry.
Despite Price Volatility, Oil and Gas Industry to Experience Growth and Earn Huge Profits
The possibility of global economic recovery from the COVID-19 crisis has been delayed by the Russia-Ukraine war, at least in the short term. The war between Russia and Ukraine has led to economic sanctions on a number of countries, supply chain disruptions, and a boom in commodity prices. This has caused inflation and negatively impacted different industries around the world, including the global oil and gas market. Oil price continues to experience volatility and is likely to negatively influence the market as significant decline and increase in prices negatively impact government and consumer spending. Moreover, serious increases in oil prices caused rising inflation in countries that are largely dependent on revenues generated through exporting crude oil as well as refined products.
On August 11, Reuters reported that the price of oil went up again. The International Energy Agency estimated that in June the global oil demand reached a record high of 103 million barrels per day, and the demand could reach new heights this month. The post also mentions that tightening supplies and output cuts could drive oil prices even higher. The Organization of the Petroleum Exporting Countries (OPEC) also expects the global oil demand to increase by 2.44 million barrels per day this year.
On August 10, Reuters reported that fueled by recovering profit margins, refiners around the world are making massive gains. It is expected that the bull run will continue because of the growth in demand and low inventory levels. The post also mentions that unplanned refinery outages in Asia and elsewhere are also supporting margins and that the US oil refining companies have stated that strong global demand for fuels and low product inventories are driving strong profits.
According to a report by Research and Markets, the global oil and gas industry is expected to reach a value of $7.33 trillion in 2023. Looking forward, the industry is expected to grow at a compound annual growth rate (CAGR) of 4.3% during 2023-2027, reaching $8.67 trillion by the end of the forecasted period. The increasing global demand continues to be the key driving factor creating a positive outlook for the market despite the volatility. Some of the biggest companies in the oil and gas industry like Shell plc (NYSE:SHEL), Exxon Mobil Corporation (NYSE:XOM), and BP plc (NYSE:BP) are also looking to invest in artificial intelligence (AI) and technology in order to increase their profits further. According to a report by Mordor Intelligence, the AI in Oil and Gas market size is estimated to reach a value of $2.38 billion in 2023, and is expected to grow at a CAGR of 12.09% during 2023-2028, propelling the market to reach $4.21 billion by the end of the forecasted period. AI and technology allow companies in the oil and gas sector to place sensors and gather huge amounts of data relating to the working of pipelines, refineries, and other infrastructure. Companies in the oil and gas industry can also use AI and data science to simplify access to the complex data required for oil and gas exploration as well as production. This can help enhance decision-making skills and boost their profits as well as enable them to quickly react to potential defects or unwanted changes, thus also saving costs.
Sustainability Challenges in the Oil and Gas Industry
According to the International Energy Agency, the oil and gas industry is one of the biggest contributors to greenhouse gas emissions, emitting around 135 million tons of methane in 2022. This can have a massive negative impact because of its global warming potential. Not to forget that air pollution from fossil fuels as well as the leaking of toxic substances into the soil and drinking water can cause serious diseases.
Many countries around the world are aiming to move towards renewable energy as fast as possible. However, as the consumption of oil around the world continues to increase year on year, sustainability challenges in the oil and gas industry as well as climate-related risks could all play a vital role in the coming years.
The good news is that oil and gas industry leaders are aware of these challenges, and are acting to address them. On July 25, Reuters reported that the US government will provide funding of $1.55 billion to monitor and reduce methane emissions from the oil and gas sector. The post also mentions that the Environmental Protection Agency and the Department Of Energy will also be looking to welcome bids from companies for the deployment of technologies and implementation of best practices in the oil and gas sector.
On June 1, Reuters reported that Exxon Mobil Corporation (NYSE:XOM), one of the leading companies in the oil and gas industry, has signed a carbon capture and sequestration (CCS) contract with US steelmaker Nucor Corporation (NYSE:NUE). Carbon capture and storage can have economic, social, and environmental benefits as it helps reduce emissions and permanently remove CO2 from the atmosphere. Unlike the oil and gas companies in Europe, which are investing in traditional renewable energies like solar and wind, Exxon Mobil Corporation (NYSE:XOM) seems to be more focused on reducing emissions from its own operations and charging customers to do the same for them.
On July 28, Exxon Mobil Corporation (NYSE:XOM) reported its earnings for the fiscal second quarter of 2023. The company reported earnings per share (EPS) of $1.94, and a revenue of $82.91 billion.
Here are some comments from Exxon Mobil Corporation’s (NYSE:XOM) Q2 2023 earnings call:
“Our Low Carbon Solutions business continues to make progress in building an advantaged, low cost, high-return business in capturing, transporting, and storing carbon.
We announced a CO2 offtake agreement with Nucor, one of North America’s largest steel producers. And we signed an agreement to acquire Denbury, which will provide ExxonMobil with the largest owned and operated network of CO2 pipelines in the United States. Combining Denbury’s assets and experience with our capabilities will significantly accelerate and expand our ability to profitably help customers reduce their emissions and allow ExxonMobil to play an even greater role in a thoughtful energy transition. It significantly enhances our competitive position and offers a compelling customer proposition to economically reduce emissions in hard-to-decarbonize heavy industries which, today, have limited practical options.”
Top 20 Largest Refineries In The World anekoho/Shutterstock.com
Methodology
In this article, we have listed the top 20 largest refineries in the world in terms of refining capacities. To collect data for our list, we consulted the 2022 Worldwide Refining Survey report published by the Oil & Gas Journal. We used data obtained for the latest year in their dataset and narrowed down our selection to rank the 20 largest refineries in the world based on their daily processing capacity of crude oil. The refining capacities are measured in barrels per calendar day (b/cd). The largest refineries in the world are listed below in ascending order with their respective refining capacities.
Top 20 Largest Refineries In The World
20. Saudi Aramco Total Refinery & Petrochemicals Co. (SATORP)
Refining Capacity: 460,000 b/cd
First up on our list of the 20 largest refineries in the world is Saudi Aramco Total Refinery & Petrochemicals Co. (SATORP), an oil refinery in Jubail, Saudi Arabia. As a product of the alliance between Saudi Aramco (TADAWUL:2222) and TotalEnergies SE (NYSE:TTE), the SATORP refinery has the capacity to process 460,000 barrels of crude oil per day. Saudi Aramco (TADAWUL:2222) is one of the largest companies in the world in terms of revenue as well as market cap.
Other prominent players in the global oil and gas industry include Exxon Mobil Corporation (NYSE:XOM) BP plc (NYSE:BP), and Shell plc (NYSE:SHEL).
19. Sinopec Zhenhai Refining & Chemical Company, Ningbo Complex
Refining Capacity: 461,890 b/cd
Sinopec Zhenhai Refining & Chemical Company Ningbo Complex is an active petrochemical complex located in Ningbo City, Zhejiang, China. Owned by China Petroleum & Chemical Corporation (NYSE:SNP) and operated by Sinopec Shanghai Petrochemical Company Limited (NYSE:SHI), it has a refining capacity of 461,890 barrels per day as of 2022.
18. Sinopec Maoming Company, Maoming Complex
Refining Capacity: 471,932 b/cd
Sinopec Maoming Company Maoming Complex is another active petrochemical complex owned by China Petroleum & Chemical Corporation (NYSE:SNP) and operated by Sinopec Shanghai Petrochemical Company Limited (NYSE:SHI). It has a refining capacity of 471,932 barrels per day and is located in Maoming City, Guangdong, China.
17. ExxonMobil Refining & Supply Co. Baton Rouge Refinery
Refining Capacity: 513,000 b/cd
ExxonMobil Refining & Supply Co. Baton Rouge Refinery is the first refinery in our list of the top 20 largest refineries in the world that is located in the US. Located in Baton Rouge, Louisiana, it is owned by Exxon Mobil Corporation (NYSE:XOM) and has a refining capacity of 513,000 barrels per day as of 2022.
16. Hyundai Oilbank Daesan Plant
Refining Capacity: 520,000 b/cd
Hyundai Oilbank Daesan Plant is an oil refinery in Seosan-si, Chungcheongnam-do, South Korea. It is owned by Hyundai Oilbank (KS:267250), and as one of the largest refineries in the world, it has the capacity to process 520,000 barrels of crude oil per day.
15. Mailiao Formosa Petrochemical Co. Refinery
Refining Capacity: 540,000 b/cd
Owned by Formosa Plastics Corporation (TW:1301), Mailiao Formosa Petrochemical Co. Refinery ranks among the largest refineries in the world with a refining capacity of 540,000 barrels per day as of 2022. It is Taiwan’s largest refinery and is located in Mailiao, Yunlin County, Taiwan.
14. Reliance Industries Ltd. – SEZ Jamnagar Refinery
Refining Capacity: 542,219 b/cd
The Reliance Industries Ltd. – SEZ, Jamnagar Refinery is one of the two refineries at the Jamnagar Refinery Complex located in Jamnagar, Gujarat, India. Owned by Reliance Industries Limited (NSE:RELIANCE), it has a refining capacity of 542,219 barrels per day as of 2022.
13. Saudi Arabian Oil Co. Ras Tanura Refinery
Refining Capacity: 550,000 b/cd
Located in Ras Tanura, Saudi Arabia, Saudi Arabian Oil Co. Ras Tanura Refinery is the largest refinery in Saudi Arabia and one of the largest refineries in the world. It is owned by Saudi Aramco (TADAWUL:2222) and has a refining capacity of 550,000 barrels per day.
12. ExxonMobil Refining & Supply Co. Baytown Refinery
Refining Capacity: 554,800 b/cd
ExxonMobil Refining & Supply Co. Baytown Refinery is another major oil refinery owned by Exxon Mobil Corporation (NYSE:XOM). Located in Baytown, Texas, US, ExxonMobil Refining & Supply Co. Baytown Refinery has a refining capacity of 554,800 barrels per day as of 2022.
11. ExxonMobil Refining & Supply Co. Pulau Ayer Chawan (PAC) Refinery
Refining Capacity: 562,400 b/cd
Another refinery owned by Exxon Mobil Corporation (NYSE:XOM), the ExxonMobil Refining & Supply Co. Pulau Ayer Chawan (PAC) Refinery is located at Jurong Island, Singapore. As Singapore’s biggest refinery, it has a refining capacity of 562,400 barrels per day as of 2022.
10. Marathon Petroleum Co. Galveston Bay Refinery
Refining Capacity: 593,000 b/cd
Owned and operated by the American petroleum refineries company, Marathon Petroleum Corporation (NYSE:MPC), the Marathon Petroleum Co. Galveston Bay Refinery is located in Texas City, Texas, United States. As of 2022, the refinery has the capacity to process 593,000 barrels of crude oil per calendar day.
9. Marathon Petroleum Co. Garyville Refinery
Refining Capacity: 596,000 b/cd
Located in Garyville, Louisiana, US, the Marathon Petroleum Co. Garyville Refinery is another refinery in our list of the top 20 largest refineries in the world which is owned and operated by Marathon Petroleum Corporation (NYSE:MPC). As of 2022, it has a refining capacity of 596,000 barrels per calendar day.
8. Motiva Enterprises LLC Port Arthur Refinery
Refining Capacity: 607,715 b/cd
Located at Port Arthur, Texas, US, the Motiva Enterprises LLC Port Arthur Refinery has a refining capacity of 607,715 barrels per day as of 2022. Motiva Enterprises LLC was a joint venture between Shell plc (NYSE:SHEL) and Saudi Aramco (TADAWUL:2222). However, Shell plc (NYSE:SHEL) sold its shares to Saudi Aramco (TADAWUL:2222) in 2017 and Motiva Enterprises LLC is now an American company that operates as a fully-owned affiliate of Saudi Aramco (TADAWUL:2222), and owns one of the largest refineries in the world.
7. Kuwait Integrated Petroleum Industries Co. Al-Zour Refinery
Refining Capacity: 615,000 b/cd
Located in Al-Zour, Kuwait, the Kuwait Integrated Petroleum Industries Co. Al-Zour Refinery is Kuwait’s largest environmentally friendly oil refinery. It is owned by Kuwait Integrated Petrochemical Industries Company, which is a subsidiary of the fully state-owned Kuwait Petroleum Corporation. As of 2022, the Al-Zour refinery has a refining capacity of 615,000 barrels per day.
6. Reliance Petroleum Ltd. Jamnagar Refinery
Refining Capacity: 662,712 b/cd
Owned by Reliance Petroleum Ltd., which is an Indian petroleum company and a subsidiary of Reliance Industries Limited (NSE:RELIANCE) and BP plc (NYSE:BP), this is the second refinery at Jamnagar, Gujarat, India. The Reliance Petroleum Ltd. Jamnagar Refinery has a refining capacity of 662,712 barrels per day. This also means that the total refining capacity for the two refineries at the Jamnagar Refinery Complex is 1,204,931 barrels per day.
Some of the world’s largest oil refining companies include Exxon Mobil Corporation (NYSE:XOM), BP plc (NYSE:BP), and Shell plc (NYSE:SHEL).
Click to continue reading and see the Top 5 Largest Refineries In The World.
