Vacuum Gas Oil Market: Introduction
- Vacuum gas oil also known as cat feed, a feedstock for fluid catalytic cracker used in the production of gasoil, gasoline, and many other by-products
- Vacuum gas oil is an element of petroleum hydrocarbon distillate family. Vacuum gas oil consists of hydrocarbon material, which is heavier than diesel. The cracking temperature is close to 360°C and is favored to combine with hydrogen.
- Vacuum gas oil is primarily used as feed in cracking systems such as hydrocracker and fluid catalytic cracking. These systems upgrade vacuum gas oil into products such diesel, gasoline and if not upgraded it can also be blended with residual fuel
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Hydrocracking and Fluid Catalytic Cracking of Vacuum Gas Oil
- Fluid catalytic cracking is one on the complex and extensively used process in petroleum refining. It is used to process heavy petroleum gas oils into diesel fuels, light olefins, gasoline, and other products
- Fluid catalytic cracking of vacuum gas oil results in wide range of products such as methane, hydrogen, and heavy polymeric material such as coke
- Hydrocracking of vacuum gas oil can obtain yields and qualities of fractions such as kerosene, diesel, naphtha, and unconverted oil. However, the efficiency of hydrocracking of vacuum gas oil depends on the nature of catalyst used.
Key Driver of Vacuum Gas Oil Market
- The use of vacuum gas oil in the production of diesel is likely to boost the demand for the oil in the market. Rise in investment in research and development in hydrocracking and fluid catalytic cracking process is helping gain good output from these process. Thus, vacuum gas oil can help recover the demand for diesel in the market.
- Demand for vacuum gas oil in bunker fuel is increasing due to the rise in demand in the marine market. Growth in sea trade and marine exploration is anticipated to augment vacuum gas oil market in the next two years.
- On January 2019, Indian Oil Corporation Ltd, shut its vacuum gas oil hydrotreating unit at its refinery at Vadodara for 50 days to raise its capacity to 2.2 million mt/year, up 4.8% from the current capacity. The company plans to hike the capacity of its continuous catalytic reformer at the same time to 780,000 mt/year, up 30% from the current capacity.
North America Expected to Hold Major Share of the Global Vacuum Gas Oil Market
- Geographically, the vacuum gas oil market can be split across five regions North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- North America held significant share of the market during the forecast period in 2018, due to the high automobile volume and increase in need for high octane gasoline in the region. Furthermore, the region has well established cracking and refining facilities.
- The vacuum gas oil market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period due the increase in demand for automobiles and growth in investment in the petroleum sector
- The vacuum gas oil market in Europe is projected to hold moderate share of the market in the near future
- The market in Latin America and Middle East & Africa is expected to expand at a slow pace during the forecast period
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Key Players Operating in the Vacuum Gas Oil Market:
- Kuwait Petroleum Corporation
- Exxon Mobil Corporation.
- Axeon Specialty Products
- U.S. Oil & Refining Co.
- Royal Dutch Shell
- Zhejiang Petrochemical Corporation
- Solis Oil
- Vertex Energy Inc.
Global Vacuum Gas Oil Market: Research Scope
Global Vacuum Gas Oil Market, by Product
- Heavy Vacuum Gas Oil
- Light vacuum Gas Oil
Global Vacuum Gas Oil Market, by Sulfur Content
- Low Sulfur VGO
- High Sulfur VGO
Global Vacuum Gas Oil Market, by Application
- Gasoline Production
- Diesel Oil/Kerosene Production
Global Vacuum Gas Oil Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
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