Global Top 10 Emerging Oil Storage Markets – Market Analysis, Capacity Forecasts and Competitive Landscape to 2015

14 Jun 2010 • by Natalie Aster
Global Top 10 Emerging Oil Storage Markets – Market Analysis, Capacity Forecasts and Competitive Landscape to 2015”, is the latest report from GlobalData, the industry analysis specialist, offering extensive information on the top 10 emerging oil storage markets in the world. This study provides a detailed analysis of the of global top 10 emerging oil storage markets: China, the UAE, India, Canada, Iran (Islamic Republic of Iran), the Netherlands, France, Poland, Singapore and the Republic of Korea, with a focus on the key trends, drivers and challenges to the growth of the oil storage market. The research examines capacity forecasts, the demand outlook, the investment scenario and the market structure of the oil storage industry in each country to 2015.

Emerging Markets Constitute 26% of the Global Storage Capacity and Will Grow at an AAGR of 4.9% during 2009-2015

The fastest growing oil storage markets – China, the United Arab Emirates, India, Canada, the Islamic Republic of Iran, the Netherlands, France, Poland, Singapore and the Republic of Korea – constituted 26% of the global storage capacity in 2009. Driven by the rising demand for oil and petroleum products, increased port trade and oil supply security, the storage markets are likely to grow at an Average Annual Growth Rate (AAGR) of 4.9% during 2009-2015. The emerging markets will add a capacity of 44.43 MMcm to the storage capacity of 128.93 MMcm in 2009 to reach 173.36 MMcm in 2015.

China is the major contributor to the growth in emerging markets and is growing at an AAGR of 8 % and accounts for 8.8% of the global storage capacity. It is followed by the UAE constituting 1.6% of the global storage capacity and growing at an AAGR of 10.5% in 2009-2015. India is the third fastest growing market with an AAGR of 3% during 2009-2015 and a global market share of 1.6%.

Asia –Pacific Accounts for Two Thirds of Oil Storage Capacity in the Emerging Oil Storage Markets

The import dependent, developing Asian countries – China, India, the Republic of Korea and Singapore – are driving the growth of the oil storage industry in emerging markets. Together these markets account for nearly two-thirds of the oil storage capacity in emerging markets with a storage capacity of 84.60 MMcm in 2009. Anticipated to grow at an AAGR of 5.33 % during 2009-2015 these markets will add another 31.87 MMcm of storage capacity by 2015.

Port Trade Triggers Oil Storage Capacity Growth in the Republic of Korea and the UAE

The UAE’s port Fujairah has witnessed increased port trade in recent years. Its strategic location coupled with its growing importance as a refueling and re-export destination for fuel oil and other petroleum products have boosted port trade. The trading activities have created demand for additional storage capacity. Two out of three new storage terminals are being planned in Fujairah which will add a capacity of 2.75 MMcm by 2015.

The Republic of Korea is poised to become a major trading hub in Asia. Its accessibility to the industrial unit of Japan and China through the North Pacific shipping route has augmented the trade flows at the Yesou and Ulsan ports. To facilitate the country’s growing trade requirements a storage terminal of capacity 0.95 MMcm is being constructed at Yesou. Capacity expansion of 1.04MMcm by 2015 will also lead to significant growth in the storage market

Development of SPRs Drive Oil Storage Growth in India and China

China and India are developing large scale Strategic Petroleum Reserves (SPRs) to ensure the security of oil imports against a short term supply disruption. China plans to add around 70-80 MMcm of Storage capacity through Strategic Petroleum Reserves cable of holding 90-100 days of oil consumption by 2015. The SPRs are being built in three phases to be completed in 2020. Similarly, India is also building SPRs of approximately 5.7 MMcm of storage capacity that will provide the equivalent of 15 days of oil consumption. The SPRs will be located in Vishakhapatnam (Andhra-Pradesh), Mangalore (Karnataka) and Padur (Karnataka).