Asian Refining Facing Hard Times

Between now and 2011, a spate of new refineries with a total capacity of 7 million barrels per day will be built. Half of that new capacity will be in Asia. The refineries aim to profit from the ongoing global shortage in refining capacity, which has sent crack spreads soaring. However, the threat of overcapacity now looms large.
Location, low costs, and lower environmental standards are driving these expansions, occurring mainly in China, India, Saudi Arabia, Vietnam, Indonesia, Kuwait, and Japan. Because of higher costs and regulatory and environmental hurdles, fewer amounts will be built in the U.S. and Europe.

EnergyTribune