Vacuum Gas Oil (VGO) Market In Global, Vacuum Gas Oil (VGO) Industry In Global: Ken Research
Vacuum gas oil or VGO is a vital bridging feedstock that can augment the efficiency of diesel & gas from process plants. It is produced through the vacuum distillation column using various different processes such as hydrogenation and cracking. VGO is also referred to as cat feed as it is used as a feedstock to create gasoline, gasoil and other by-products.
According to analysis, “Global Vacuum Gas Oil (VGO) Market Status (2015-2019) and Forecast (2020-2024) by Region, Product Type & End-Use” few of the leading companies operating in the global vacuum gas oil market include Kuwait Petroleum Corporation, U.S. Oil & Refining, Axeon, Shell and among others. The key firms are increasingly focusing on the ramping up their hydro-cracking facilities. The vacuum gas oil market is categorized on the basis of product, sulfur content, and application. The product segment is further sub-segmented into light vacuum gas oil and heavy vacuum gas oil. The light vacuum gas oil segment is projected to grow at an accelerated CAGR owing to rise in use of light vacuum gas oil in cracking in order to obtain gasoline & diesel during the forecast period. Heavy vacuum gas oil can also be used as a feedstock for producing the lubricating oil base stock by a sequence of solvent extraction processes to remove the aromatic hydrocarbons by furfural extraction, and also to remove the long-chain paraffin by de-waxing. Additionally, the application segment is categorized into diesel oil/kerosene production and gasoline production. As low sulfur VGO makes an excellent feed-stock to obtain the gasoline & other high-octane components, the gasoline production segment is likely to grow at the highest CAGR during the forecast period.
Rising demand for fossil fuels, increase in investments in research & development (R&D), growth in marine industry and increase in efforts to produce a bulk output of oil & gas are major factors for growth of vacuum gas oil market. Apart from this, strict mandates by global organizations on vacuum gas oil compositions & emission contents are hindering factors for market. Moreover, rise in demand from the Asia-pacific region is a key opportunity for market. Furthermore, environment regulation on the use of diesel is a major challenge for global market.
By regional analysis, vacuum gas oil market is divided into North-America, Asia-Pacific, Europe and rest of the world. The North-America is a leading region in global market due to increase in investment in R&D activities and rise in demand of gasoline & diesel for automotive across the region. The Asia-Pacific region is anticipated to exhibit substantial growth rate owing to rise in need for bunkering fuel in the developing economies like India and China over the forecast period. Additionally, the Middle East & Africa region is also anticipated to exhibit substantial growth rate because of large unconventional reserves discoveries along with vast exploration & production (E&P) activities during the forecast period. It is predicted that future of the global vacuum gas oil market will be optimistic on account of presence of the well-developed refining & cracking facilities and rapid industrialization coupled with growth in per capita energy demand during the forecast period.
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Ankur Gupta, Head Marketing & Communications