The Global Vacuum Gas Oil Market size was US$ 385.87 billion in 2022 and it is expected to reach US$ 533.97 billion by the end of 2028, with a CAGR of 5.80% between 2023-2028.
Vacuum gas oil or VGO is one of those puzzle pieces discussed by purifiers but hardly understood by those of us who are not engineers. Either way, it is an important bridging feedstock that can increase the efficiency of important diesel and gas from process plants. Lighter shale crudes, for example, Eagle Ford can provide VGO materials straight from essential refinement. Today we shed light on this semi-completed processing factory item. Vacuum refining recovers diesel from the persistent vacuum oil and diesel market. These cracking units transform diesel under vacuum into more valuable products, namely gasoline, and diesel. If not improved, the vacuum gas oil is mixed with the residual fuel oil. However, this is quite rare as the value of vacuum gas oil is much higher as feed for improvement purposes. Often, if there are no cracking units in a refinery to improve the vacuum gas oil that is generated, the refinery will sell it as an intermediary to another refinery, instead of degrading it by mixing it with fuel oil residual.
Market Trends:
In an average complex processing facility, for example, it is normal in the United States, especially on the Gulf Coast, for the VGO is further prepared in one of two types of synergistic splitting units. These "breakdown" units use a mixture of heat and voltage pulses to break the VGO into lighter parts of mixed gas and diesel. Based on this simplicity of vacuum gas oil units, the world market for vacuum gas oil is expanding considerably today.
Market Drivers:
The use of vacuum gas oil in diesel production is likely to stimulate the call for oil in the market. The increased investment in research and development in hydrocracking and fluid catalytic cracking processes contributes to obtaining good efficiency from these processes. Thus, vacuum gas oil can help regain the call for diesel in the market. The call for vacuum gas oil in bunker fuel is escalating due to increased calls in the marine market. Expansion in maritime trade and offshore exploration is predicted to increase the vacuum gas oil market over the next two years. The growing need for fossil fuels in different sectors, as well as escalating efforts to produce bulk oil and gas production, are predicted to have a positive impact on the industry outlook.
Market Restraints:
The incompatibility of vacuum gas oil with other fuels is predicted to limit market expansion during the foreseen period.
Market Opportunities:
Factors like the strong recovery of diesel and the escalating employment of VGO to supply bunker fuels are driving the worldwide industry for vacuum gas oil. Increased investments in research and development activities, along with growing calls from the Asia-Pacific region, are predicted to create new opportunities for market expansion in the coming years. The growing call for fossil fuels around the world, as well as growing investments in research and development, are predicted to positively influence the outlook for the industry. The growing maritime industry is predicted to increase the need for VGO as fuel for offshore cargo ships and other vessels.
Market Challenges:
The main limitation of the vacuum gas oil market lies in the strict mandates of worldwide organizations on the composition of OGVs and emission content. The International Maritime Organization (IMO) has implemented strict guidelines regarding sulfur present in the raw material of OGVs for use as marine fuels.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 – 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2028 |
|
CAGR |
5.80% |
|
Segments Covered |
By Product, Sulfur Content, Application, and Region. |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
Axeon, Kuwait Petroleum Corporation, Shell, Zhejiang Petrochemical Corporation, U.S. Oil and Refining, KazMunaiGaz, TAIF-NK, NESTE, Vertex, Soils Oil, Lukoil, and Others. |
Market Segmentation
LVGO is processed with the help of a fluid cracker and includes the conversion of atmospheric diesel into light fuel oils and high-octane gasoline. While for HVGO a hydrocracking plant is employed to process what consumes hydrogen to remove impurities and excess sulfur from the outlet.
Sulfur content plays a vital role in choosing the type of final output and is considered a key property when trading with VGO. Low sulfur VGO is rated when the sulfur volume is much less, typically 0.5% or less, while high sulfur VGO has a sulfur content of around 2%.
North America had a significant market share during the 2018 foreseen period, due to the high volume of automobiles and the growing call for high-octane gasoline in the region. In addition, the region has well-established cracking and refining facilities. The vacuum gas oil market in Asia-Pacific is predicted to develop at a rapid pace during the foreseen period due to the growing call for automobiles and growing investment in the oil sector. The vacuum gas oil market in Europe is predicted to maintain a moderate market share in the near future. The Latin America, Middle East, and Africa market is predicted to develop at a slow pace during the foreseen period. The Asia-Pacific region is predicted to grow at an accelerated CAGR of 7.77% during the foreseen period. This higher expansion rate can be attributed to rapid industrialization and the growing per capita call for energy in the region.
India's oil and gas (O&G) industry is remarkable in the worldwide context: it contributes 5.2% of worldwide oil call, ranks among the top three markets for expansion in the call, and is fourth in the world in refinery capacity (~ 249 MTPA). India is also heavily dependent on imports, with oil imports at 84% and gas at 53% of their respective annual calls. By the way, O&G imports accounted for around 25% of India's import bill in the fiscal year 2019. Hence, the impact of COVID-19, either due to destruction, widespread call, or the spiral of declining oil prices is a major concern for all participants in the Indian O&G industry. The Indian O&G industry is usually competent in nature in disaster response and its effectiveness has been explained in a range of disaster scenarios in the past few years.
Market Key Players
Major players in the global vacuum gas oil market are
Market Recent Developments:
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region