Delayed Coker Unit Process Technology Market

Delayed Coker Unit Process Technology Market Outlook (2022 to 2035)

The global delayed coker unit process technology market was valued at US$ 295 Mn in 2020, and is forecast to reach US$ 360 Mn by 2035, expanding at a CAGR of 1.3% over the assessment period (2020 to 2035).

Installation of DCUs has gained prominence owing to their ability to generate profits for refiners. Additionally, growth in demand for DCU installations can mainly be attributed to rising concerns regarding shrinking refinery profitability and profit margins, which has compelled refiners to divest some of their assets and level up for the losses incurred.

Since refineries were already running on low margins pre-pandemic, significant dip in demand for oil during COVID put additional pressure on companies to increase throughput and productivity. Delayed coker unit process (DCU) technology application as a profit-generating complex is projected to drive installation rates in refineries over the decade.

Report Attributes	Details
Delayed Coker Unit Process Technology Market Size (2020A)	US$ 295 Mn
Estimated Market Value (2025E)	US$ 311 Mn
Market Value Forecast (2035F)	US$ 360 Mn
Global Market Growth Rate (2022 to 2035)	1.3% CAGR
Asia Pacific Market Share (2020)	~17%
Market Share of Top 3 Companies	~85%
Key Companies Profiled	Bechtel Corporation; Lummus Technology; Wood PLC; Honeywell UOP; Worley Parsons Limited (Jacobs)

Delayed Coker Unit Process Technology Demand Analysis (2020 to 2021) Vs. Market Outlook (2022 to 2035)

Latest industry analysis by Fact.MR, a market research and competitive intelligence provider, suggest that, market value for process technology used in DCUs in 2020 stood at US$ 295 Mn.

Over the past decade, refiners have not been able to keep up with fluctuating oil prices, thus affecting their profitability margins. Additionally, introduction of new rules and regulations over carbon emissions have increased the complexities involved in the refining business.

Further, process optimization and digitalization in refining complexes did not pick up pace as expected, which would have increased the efficiency and productivity of refineries, thus generating higher revenues for companies.

Attributed to the above-discussed factors, refiners are increasingly opting for methodologies that would help them navigate through losses and enhance their refining margins. Since coking operations have been identified as a tested methodology to convert heavy crude into lighter hydrocarbons, it has gained traction, and thus, refineries across the world can be seen installing DCU units in order to increase their profitability.

Moreover, trends suggests that reservoirs equipped with lighter hydrocarbons are on a decline, which has compelled oil producers to rely on the production of heavy crude. Over the next decade, dependence on heavy crude is projected to increase as demand for energy rises. This will compel refiners to upgrade their bottom-to-barrel operations, calling for the installation of DCUs, thus driving market value of this process technology.

All this will have a direct impact on DCU installation rates and provisions to provide licenced technology. Thus, global market value for the process technology used in DCU installations is projected to surpass US$ 360 Mn by 2035, progressing at a CAGR of around 1.3%.

Which Market Trends Point towards the Importance of DCU Installations Globally?

2020 was an anomaly, which shook the world and disrupted the entire supply chain. The oil & gas industry too was not untouched. Lockdowns and shutdowns compelled people to remain at home, thus resulting in significant downfall in oil demand.

Additionally, since the past half-decade, refineries were already running on low margins, and at the same time, significant dip in demand compelled refiners to divest some of their assets in order to reduce the rising debt.

For instance:-

• ExxonMobil in January 2020 announced divesture of around 32.7% stake in an oilfield located in West Qurna. This strategic divestment by ExxonMobil is in line to reduce debt and lower the shock incurred post pandemic.
• In November 2021, Royal Dutch Shell completed the divesture of the Puget Sound refinery to HollyFrontier. The total deal signed was worth US$ 614 million, and through this divestment, Shell aims at narrowing losses incurred in 2020.

Moreover, projections are that, crude oil reservoirs containing lighter hydrocarbons will continue to deplete at faster rates, resulting in increased dependency on heavy crude. Since DCU is an irreplaceable technology available today in order to convert heavy crude into lighter hydrocarbons, refiners are looking to collaborate with DCU process technology providers to enhance their refining margins, thus helping them to sustain in a competitive market.

How Have DCU Installations Evolved Over the Past Decade?

Over the past decade, DCU installation rates have increased owing to rise in the demand for lighter hydrocarbons and application of DCUs as a prominent carbon rejection technology. Some key installations that have taken place are:-

• Oil & gas major Exxon Mobil completed its Antwerp DCU installation in 2018. Exxon invested approx. US$ 2 Bn over the last decade in the expansion and up-gradation of the facility. Meanwhile, EFRA projects installed delayed coker units as a part of the on-going construction of the LOTOS refinery. Installation was done in order to prioritize deep conversions of heavy fuel to achieve profitability.
• In 2020, Assiut National Oil Processing Company signed a contract with Technip FMC for the engineering, procurement, and construction of a hydrocracking complex. The contract covers a diesel hydrocracking unit, a delayed coker unit, and a vacuum distillation unit.

Moreover, it has been anticipated that, over the next decade, refineries globally will undergo revamps, which would lead to an increase in DCU installations, thus providing a positive outlook for delayed coker unit technology providers.

Country-Wise Analysis

Which Regional Markets Have Been on the Radar of DCU Technology Providers?

“Market Players Concentrating on MEA for Increased Profits”

Installation rates for DCUs is projected to be high in the Middle East and Africa, which is mainly attributed to refining capacity additions that the region is seeing, and the trend in projected to continue over the decade.

For instance, the Middle East and Africa will dominate capacity additions, accounting for around 90% of the total capacity addition over the decade. Similar trends have been tracked for the past half-decade too, which positioned the MEA DCU technology market at a valuation of US$ 90 Mn in 2020.

“Energy Demand Rising Rapidly across Asia Pacific, Especially China and India”

Energy demand in the Asia Pacific region is projected to increase multi-fold over the decade. This can mainly be attributed to rising population, rapid urbanization, and shift of the lower-income group to the middle-income group.

Since DCU is a proven technology for bottom-of-the-barrel upgradation, helping in catering to the energy needs of Asia Pacific, it has gained prominence in local refineries, thus providing a positive stance for the technology providers of DCUs.

Additionally, presence of refineries in sizeable numbers undergoing capacity additions and revamps has been a point of attraction for many process technology providers.

• For instance, according to a report published by IEA, greenfield projects will be responsible for around 6.2 mb/d refining capacity additions by 2026, of which, one-third will happen in China, thus driving the Asia Pacific DCU technology market.

Similar trend of capacity addition is projected to happen in Asia Pacific over the decade, thus positioning the Asia Pacific DCU technology market at US$ 75.3 Mn by 2035-end.

Category-Wise Analysis

Which Delayed Coker Unit Technology has Dominated Global Installations?

“Dual-fired DCU Technology Most Sought-after across the World”

Dual-fired delayed coker unit technology has dominated the installation rates at refineries globally. A typical dual-fired DCU is installed in refineries, in which, one of the coke drums is filling while the other coke drum gets emptied.

This continuous process ensures that coker units run at full capacity, which is essential keeping in mind the need to extract high-value products such as lighter hydrocarbons. Hence, attributed to this factor, dual-fired DCU technology has been preferred across refineries globally.

Thus, dual-fired delayed coker unit technology is projected to account for around 77% of total installations by 2035.

Competition Landscape

Bechtel Corporation, Lummus Technology, Wood PLC, Honeywell UOP, and Worley Parsons Limited (Jacobs) are some of the major providers of delayed coker unit technology.

• In February 2021, Bechtel announced a key collaboration with Suez Oil Processing Company (SOPC) to supply them with coker furnace equipment. Bechtel has partnered with leading EPC contractor Petrojet to outsource the fabrication of coker furnaces. Through this strategic collaboration, the company aims to establish key partnerships with local EPC contractors.
• In 2019, Chennai Petroleum Corporation Limited (CPCL) announced that it has awarded Chevron Lummus Global with a contract for the design of 2,500 KT delayed coker unit process technology for the Cauvery basin refinery. With this being the second DCU unit to be used by CPCL using CLG technology, the company seems to have tapped well into the Indian petrochemical industry.

Fact.MR has provided detailed information about the price points of top delayed coker unit process technology licensers positioned across regions, in addition to providing sales growth information, business expansion and collaboration, in the recently published report.

Key Segments of DCU Technology Industry Research

• By Product Type :

  • Single-fired Delayed Coker Units
  • Dual-fired Delayed Coker Units

• By End Use :

  • Fuel
  • Steel & Cast Iron
  • Electrodes
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Middle East & Africa