Amid growing uncertainty about the future demand for refined petroleum products—driven largely by the accelerating electrification of transportation, which has been the main consumer of these fuels historically—the refining industry is undergoing a strategic transformation. Refineries are increasingly adapting to this shifting landscape by exploring new value-creation pathways, particularly through diversification into petrochemical production. This transition offers opportunities to leverage existing refining assets and expertise to meet evolving market needs.
In this context, our study examines how different refinery configurations and design choices influence operational performance and determine the potential for greater petrochemical integration. Using KAPSARC’s oil value-chain models, we analyze these dynamics across national, regional, and global levels, providing insights into how refinery systems can evolve within a lower-carbon, petrochemicaldriven future.