Global Vacuum Gas Oil (VGO) Market Size To Grow At A CAGR Of 5.8% During 2022-2027
The ‘Global Vacuum Gas Oil Market Growth, Price, Trend, Growth, Analysis, Report and Forecast 2022-2027’ by Expert Market Research gives an extensive outlook of the global vacuum gas oil (VGO) market, assessing the market on the basis of its segments like type, sulphur content, application, and major regions.
The key highlights of the report include:
Market Overview 2017-2027
• Forecast CAGR (2022-2027): 5.8%
The vacuum gas oil (VGO) market is likely to be influenced positively due to the surging demand for fossil fuels among various industries. This is supplemented by the rise in efforts for generating a huge volume of oil and gas. VGO is a mix of hydrocarbons generated during the extraction of crude oil. Over the years, the usage of VGO has increased rapidly, a symbol that the oil industry is fighting to crush each bit of inefficiency out of their extraction procedures.
Geographically, the North American region is holding the market growth of vacuum gas oil (VGO) due to the existence of well-developed refining and cracking facilities along with rising automobile sales in the region.
Meanwhile, the Asia Pacific region is anticipated to register substantial growth in the vacuum gas oil (VGO) market share on account of the rising per capita energy demand coupled with escalated oil consumption across the region, especially in emerging countries such as India. The extreme adoption rate due to the government initiatives are fuelling the vacuum gas oil industry in the Asia Pacific region. Additionally, there are security and safety risks linked with the huge expansion of offshore oil and gas exploration as well as exploitation activity in the region.
Vacuum Gas Oil (VGO) Market Segmentation
Vacuum gas oil (VGO) describes the heavy oil left over from petroleum distillation, which can be further refined in a catalytic cracking unit. This serves in upgrading vacuum gas oil into products with greater value, that is, gasoline and diesel. If the products are not upgraded, they are blended into a form of residual fuel oil. It is a significant feedstock for fluid catalytic crackers employed to make transportation fuels and many other by-products.
VGO is one of the two central outputs of the vacuum distillation tower and is the lighter material of the two. The initial usage of vacuum gas oil is as feed for cracking units like the hydrocracker or FCC. Such units upgrade VGO into more valuable products, in the form of diesel and gasoline.
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On the basis of type, the market is segmented into:
By sulphur content, the vacuum gas oil (VGO) market is categorised into:
• Lower Sulphur Content
• High Sulphur Content
Based on application, the market is segregated into:
• Gasoline Production
• Diesel Oil/Kerosene Production
By region, the market is segmented into:
• North America
• Latin America
• Asia Pacific
• Middle East
Vacuum Gas Oil (VGO) Market Trends
The high utilisation of VGO as an intermediate feedstock increases gasoline and diesel production from refineries driving the vacuum gas oil (VGO) market growth across the globe. The vacuum gas oil is formed with a vacuum distillation column employing various processes like cracking and hydrogenation. The usage of vacuum gas oil in the manufacturing of diesel is mainly to enhance the need for oil in the market.
An upsurge in the investment in research and the development of hydrocracking along with the fluid catalytic cracking process aid boost the good output from this procedure. Thereby, vacuum gas oil is likely to aid to regain the demand for diesel across the market.
Moreover, VGO is produced through a vacuum distillation column and the use of vacuum gas oil in the trade of diesel is likely to enhance the demand for oil in the vacuum gas oil (VGO) market. Additionally, the new International Maritime Organisation (IMO) guidelines that are transforming the quality of shipping fuel are expected to influence oil prices all over the globe. The key driver of this transformation is to minimise the air pollution generated in the shipping industry by minimising the sulphur content of the fuels that ships utilise. This is further expected to propel the demand for VGO worldwide over the coming years.
The rapid urbanisation and growing industrialisation in countries like India is aiding the demand for oil, which is further expected to drive the vacuum gas oil (VGO) market.
Key Market Players
The major players in the global vacuum gas oil (VGO) market
• PJSC Lukoil
• Kuwait Petroleum Corporation
• Honeywell International Inc.
• Vertex Energy Inc.
• Husky Energy Inc.
The report covers the market shares, capacities, plant turnarounds, expansions, investments, and mergers and acquisitions, among other latest developments of these market players.
The report studies the latest updates in the market, along with their impact across the market. It also analysis the market demand, together with its price and demand indicators. The report also tracks the market on the bases of SWOT and Porter’s Five Forces Models.
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