(EnergyAsia, May 15 2012, Tuesday) — Asia’s refining industry is “set to flourish” in over the next four years as a result of rising demand for refined petroleum products in fast growing countries such as China and India, according to a new report by business intelligence provider GlobalData.

According to, “Refining Industry in Asia Pacific – Market Analysis, Competitive Landscape and Capacity Forecasts to 2016,” the region will grow its refining capacity by an average 3.4% a year between 2011 and 2016 to reach 1.738 million tons.

The region’s share of the global refining capacity will rise from 31.4% in 2011 to to 31.7% by 2016.

Over this period, GlobalData expects Asia to build 21 new refineries to account for one third of the world’s refining capacity additions.

The report said China will build seven new refineries India will add three while Indonesia, Malaysia, Mongolia and Pakistan will also add two refineries each.

Last year, state-owned China Petroleum & Chemical Corp and Petrochina Company Ltd together accounted for around 89.2% of the country’s total of nearly 460 million tons of refining capacity while Indian Oil Corp Ltd, Bharat Petroleum, Mangalore Refinery and Petrochemicals Ltd, Hindustan Petroleum Corp Ltd and Chennai Petroleum Corp Ltd accounted for more than half of India’s refining capacity.

China’s refining capacity accounted for approximately 31.4% of the region’s total last year. GlobalData expects China to remain the region’s largest refining leader by 2016, with an addition of 122.4 million tons of new capacity.