Singapore remains the top downstream market in Asia-Pac

Check out which country tracks closely.

BMI's risk/reward index (RRI) scores for the Asia-Pacific region's dowstream market remains broadly intact from the previous quarter. Leading its peers is Singapore with 60 points.

RRI compares the expected returns of an investment to the amount of risk undertaken to capture these returns

BMI explained that Singapore scored high thanks to a world-class downstream infrastructure, low-risk operational environment and relatively healthier fuels consumption growth outlook compared to other refining powerhouses such as South Korea, Japan and Taiwan.

“The highly sophisticated nature of its refineries and broad product slates mean that Singapore is in a good shape to thrive in an increasingly competitive Asian refining market,” said BMI
Singapore is closely tracked by India, wherein improving technological capability of domestic refineries and the sheer size of projected demand growth over the coming years again lifted its score above most regional peers.

That said, BMI notes that refining capacity additions in India could be relatively modest, as upgrades take greater precedence over absolute capacity additions, as an increasinglycwell-supplied regional fuels market dampen appetite for many greenfield projects.