Asia Pacific Oil Storage Market - By Product (Fixed Roof, Floating Roof, Spherical), By End Use (Crude Oil, Gasoline, Aviation Fuel, Middle Distillates, LNG, LPG) & Forecast, 2024 – 2032

Asia Pacific Oil Storage Market Size

Asia Pacific Oil Storage Market size crossed for 372.2 million cubic meter in 2023 and is anticipated to expand at 3.2% CAGR from 2024 to 2032  due to the volatile oil prices and fluctuations in supply chain. Oil prices are still highly volatile, with sharp spikes and sudden drops expected due to global supply shortages. Initiatives to offset facility shutdowns and reduce supply risks will boost the Asia Pacific oil import & production, thereby contributing to the industry by 2032.
 

Frequent fluctuations in oil prices and oil supplies along with rising crude import owing to increasing energy need will lead to the development of essential Asia Pacific oil storage facilities across the region. For instance, in March 2023, as per China National Petroleum Corporation's Economics and Technology Research Institute (ETRI), import rose to 6.2% when compared to 2020 to 540 million tonnes along with refinery processing gained 7.8% to 733 million tonnes. In addition, China relies heavily on imported oil to fuel its economy and having adequate storage capacity helps such countries to manage its oil imports and maintain a stable supply of energy by end of 2023.
 

Growing emphasis on sustainability and environmental concerns in the APAC oil storage market along with active participation of key companies including Royal Vopak are adopting eco-friendly practices, such as using renewable energy sources, to reduce their carbon footprint and minimize the environmental impact of their operations, thereby significantly contributing to the industry growth.
 

The construction of oil storage tanks, however, involves high costs associated with installation and deployment. Extensive forays into the renewable fuel sector may also limit capacity additions across the industry. Moreover, renewable energy prices are decreasing rapidly, making them more economical than fossil fuels including oil. Such factors may create roadblocks to oil capacity additions and hinder the oil storage industry progress to some extent.
 

COVID- 19 Impact

The pandemic's impact on the global oil market has accelerated the industry dynamics, specifically across Asia Pacific region. The sharp drop in oil prices in 2020 caused many countries to stockpile oil, including China & India. Additionally, the pandemic has highlighted the importance of energy security, further driving economies efforts to expand its oil storage capacity, thereby contributing to the Asia Pacific oil storage market expansion.
 

Asia Pacific Oil Storage Market Size

Investment catering to the rapidly increasing refining throughput capacity owing to growing end use operations through petrochemical processes along with associated storage facilities required for the same is anticipated to witness positive outlook over the course of time for oil storage industry in Asia Pacific. Government inclination towards filling their strategic oil reserves to reduce the supply risk in emergency is further anticipated to complement the business outlook.
 

Government collaboration with oil giant companies to facilitate & maintain the present storage capacities is anticipated to increase the Asia Pacific oil storage market potential in the near future. For instance, in December 2022, Japan Organization for Metals and Energy Security (JOGMEC) extended their deal with Aramco for another three years, where JOGMEC leases 13 national crude oil stockpiling tanks on the island southwest of mainland Japan to Aramco.
 

In return, the country receives a priority claim on the oil stocks in case of an emergency. Such deals & partnerships ensuring the safety of oil stockpiles of any economy in line with maintain their oil reserves will result in the expansion of the oil storage facilities, thereby augmenting the industry outlook.
 

For instance, Indonesian state-owned oil and natural gas corporation, Pertamina completed its first phase of its Balongan refinery upgrade in 2022, expanding its capacity to 150,000 barrel per day from 125,000 barrel per day. In addition, the company has stated to complete its first phase of its Balikpapan refinery advancement in 2024 to increase processing capacity to 360,000 barrel per day from 260, 000 barrel per day. Increasing energy needs along with high demand for petrochemical products is set to augment the Asia Pacific oil storage market growth by 2032.
 

Asia Pacific Oil Storage Market Analysis

The market volume from the floating roof is slated to display a growth of 3% CAGR between 2023 and 2032. The growing requirement for robust storage solutions for medium and low flash point petroleum is a prominent factor driving product demand. Advantages associated with these storage containers will thus amplify product installation in oil refineries. Moreover, the primary purpose of a floating roof tank is to minimize evaporation loss of the stored product and prevent the emission of volatile organic compounds (VOCs) into the atmosphere.
 

The oil storage market volume in Asia Pacific from the middle distillates segment was over 78 million cubic meters in 2022. High demand for jet oil used in aircraft engines, commercial and domestic heating, and transportation is one of the main factors driving the need for middle distillation oil storage tanks. In addition, government agencies aim for an uninterrupted supply of middle distillate refined oil in the global fuel trading market.
 

The oil storage industry volume from the LPG end-use segment is poised to attain 1.8% gains through 2032. A strong focus on expanding oil refineries to address issues such as rising oil prices, especially in India & China, is increasing the use of LPG tanks. Furthermore, discoveries of offshore oil fields also increase the rate at which oil is refined and subsequently increase the production of LPG storage over the forecast timeline.
 

Due to the high demand for oil in the region, there is a significant need for oil storage facilities. In addition, trends including the use of technology to improve the efficiency of oil storage facilities is further anticipated to benefit the industry scenario. For example, companies are implementing advanced monitoring and control systems to optimize the operation of their oil storage tanks and prevent leaks or spills.
 

The China oil storage market is expected to foresee 3% growth through 2032. China is the world's second-largest consumer of oil after the United States, and it has been rapidly increasing its oil storage capacity in recent years to meet its growing demand for oil. China has been investing heavily in building new oil storage facilities, both onshore and offshore, as well as expanding its existing ones.
 

Moreover, with the ongoing shift towards cleaner energy sources and the increasing adoption of electric vehicles, it is uncertain how long the demand for oil will continue to grow. However, China has been expanding its storage capacity to accommodate not just oil but also other fuels like liquefied natural gas (LNG) and liquefied petroleum gas (LPG).
 

Asia Pacific Oil Storage Market Share

The major players are emphasizing on collaborative facility developments to improve access to refined oil and reinforce their footprint across the global industry. Leading companies in the Asia Pacific oil storage market include:

• CST Industries
• NOV Inc
• Tianjin Anson International Co Ltd
• ElixirPro Engineering Solutions Pvt. Ltd
• Roth Industries GmbH & Co KG
• ERGIL
• Royal Vopak
• Float-Tek International Co., Ltd
• Kfloat, 
• DFC Pressure Vessel Manufacturer Co., Ltd.
   

Asia Pacific Oil Storage Industry News

• In May 2022, Royal Vopak came into a strategic partnership with Aegis, an India based oil & gas & chemical logistics company to established ‘Aegis Vopak Terminal’. The partnership between the two when announced in July 2021, has added 3 additional terminals with a capacity of 490,000 cubic meters as of May 2022. In addition, the partnership with an investment of nearly USD 132 million will intensify growth of the industry in terms of LPG, LNG, chemicals, and other industrial product storage over the coming years.
   
• In October 2020, VOPAK signed a letter of intent (LOI) with PT Chandra Asri Petrochemical Tbk (Chandra Asri), an Indonesia based, petrochemical company. The letter of intent was marked to set up a joint venture company for partnership in the industrial infrastructure business at Cilegon, Banten Province, Indonesia. In addition, the agreement is set to open storage opportunities in supply networks for existing petrochemical complex, thereby offering oil storage solution in Indonesia.
   

This market research report on Asia Pacific oil storage includes in-depth coverage of the industry with estimates & forecast in terms ‘Million Cubic meter’ from 2019 to 2032, for the following segments:

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Market, By Product

• Fixed roof
• Floating roof
• Spherical
• Others

Market, By End Use

• Crude Oil
• Gasoline
• Aviation Fuel
• Middle Distillates
• LNG
• LPG

The above information has been provided for the following country.

• China
• Japan
• South Korea
• Singapore
• Malaysia
• Indonesia