The global oil refining industry stands as both a symbol of industrial power and geopolitical strategy. But Nigeria’s refining resurgence almost stalled when a major labor dispute erupted. On September 30, 2025, PENGASSAN, Nigeria’s senior oil workers’ union, launched a nationwide strike. The move came after Dangote Refinery dismissed over 800 members and allegedly replaced them with expatriates, mostly from India.
The federal government acted swiftly. By October 1, 2025, the government brokered a truce, forcing Dangote Refinery to reinstate workers and halt foreign hiring. This report highlights refineries’ core functions, their vital role in economies and security, and profiles of the top 10 facilities globally. As nations navigate energy transitions, these massive refineries remain critical anchors of global stability and essential drivers of economic resilience.
What Are Oil Refineries?
Oil refineries; vast industrial complexes, convert crude oil from underground sources into gasoline, diesel, jet fuel, asphalt, and petrochemicals. Refiners apply distillation, cracking, reforming, and treatment processes to separate and purify hydrocarbons based on boiling points and molecular structures.
Modern refineries span thousands of acres, using automation, environmental controls, and safety systems to operate as fully integrated industrial complexes. Refineries consume vast amounts of natural gas, electricity, and water, while also producing vital byproducts like sulfur used in fertilizers. Economic pressures and renewable shifts cut global refining capacity by 350,000 bpd in Q2, yet it remains about 102 million bpd.
The Strategic Importance of Refineries to Nations
Oil refineries strengthen national sovereignty, drive energy security, boost fiscal stability, and power economies as vital engines of growth worldwide. Domestic refining creates more value through finished products, shields economies from volatile prices, and reduces dependence on exporting crude oil. Import-dependent nations operate refineries to counter supply disruptions, ensuring consistent fuel availability for transportation, defense, industrial needs, and economic resilience.
Energy security & supply continuity
Refineries transform native or imported oil into the fuels needed for industry, transportation, aviation, and electricity. A national refinery base gives governments options in times of supply disruption and lessens reliance on imported finished goods. Planning for energy security must include refining capacity, according to the IEA and other organizations.
Economic value and trade balance
High-value goods produced by refineries can be exported or sold domestically. Countries with refining capacity export fuels to earn revenue, while nations without it import expensive products that harm trade balances. Large refineries build industrial clusters, develop logistics and petrochemical hubs, create skilled jobs, and boost local procurement and economic growth.
Industrial feedstocks & downstream development
Refineries produce naphtha and LPG, fueling manufacturing and petrochemical plants, while refining-petrochemical complexes drive plastics, fertilizers, synthetic materials, and industrial growth.
Price stability & resilience to shocks
Local refining capacity mitigates price spikes and supply shocks only when refineries operate smoothly with secure crude supply and transportation. The Dangote-PENGASSAN case showed how labor disputes, logistics issues, currency pressures, or maintenance problems can weaken refining resilience.
Geopolitical leverage and strategic infrastructure
Large refining hubs shape gasoline markets, shipping routes, and diplomacy through supply deals, swaps, and fuel exports, making them vital assets.
The Top 10 Largest Oil Refineries in the World (2025)
Enormous complexes process millions of crude barrels daily in 2025, driving global economic growth and energy production across continents. Refineries, ranked by daily distillation capacity, showcase technological strength and strategic investments across Asia, the Americas, and the Middle East. The following profiles highlight the top 10 refineries using industry data on nominal capacities, which shift with operational conditions.
10. Al Zour Refinery: Kuwait (615,000 bpd)
Kuwait’s Al Zour Refinery, which has a 615,000 bpd capacity and is run by the Kuwait Petroleum Corporation, is at number 10. One of the most recent developments, it aims to improve Kuwait’s refining capacity and support Middle Eastern energy stability by exporting clean fuels that meet international standards.
9. Port Arthur Refinery: USA (630,000 bpd)
The Port Arthur Refinery, owned by Saudi Aramco and located in Port Arthur, Texas, USA, comes in ninth position with 630,000 barrels per day. This joint venture facility highlights U.S.-Saudi partnerships in the global oil market by efficiently handling heavy sour crudes and generating ultra-low sulfur diesel and other products.
8. Galveston Bay Refinery: USA (631,000 bpd)
Marathon Petroleum’s Galveston Bay Refinery produces 631,000 barrels daily, strengthens U.S. energy independence, and processes light crude into fuels in the Gulf Coast.
7. Dangote Refinery: Nigeria (650,000 bpd)
Dangote Group controls Nigeria’s Lekki Refinery, ranked seventh globally, with 650,000 barrels daily capacity and Africa’s largest refining facility. The refinery aims to end Nigeria’s gasoline import dependence, but recent labor disputes highlighted operational challenges and potential vulnerabilities. It has the potential to drastically alter regional energy dynamics.
6. Onsan Refinery: South Korea (669,000 bpd)
S-Oil’s Onsan Refinery in Ulsan, which produces 669,000 barrels per day, is ranked sixth in South Korea. With three entries in the top 10, this facility, which prioritizes residue upgrading and produces a variety of goods like asphalt and lubricants, solidifies Asia’s standing as a refining powerhouse.
5. Yeosu Refinery: South Korea (730,000 bpd)
The GS Caltex-owned Yeosu Refinery in Yeosu, South Korea, which has a 730,000 bpd capacity, comes in fifth on the list. In the midst of a drive toward sustainable energy practices, it supports South Korea’s automotive and manufacturing industries by concentrating on clean fuels and aromatics and is well-known for its integration with neighboring industrial parks.
4. Ruwais Refinery: UAE (817,000 bpd)
Fourth place goes to the Abu Dhabi National Oil Company’s Ruwais Refinery in Ruwais, United Arab Emirates, which produces 817,000 barrels per day. By generating fuels and chemicals and integrating cutting-edge technologies for efficiency and environmental compliance, this Middle Eastern behemoth demonstrates the UAE’s diversification plan and strengthens its position as a global energy hub.
3. Ulsan Refinery: South Korea (840,000 bpd)
With a capacity of 840,000 barrels per day, the third-ranked Ulsan Refinery in South Korea is located in Ulsan and is run by SK Energy. Specializing in high-value goods like petrochemicals, it is a part of the nation’s thriving refining industry and makes a substantial contribution to South Korea’s export-driven economy and energy security in an area with little local oil resources.
2. Paraguana Refinery: Venezuela (940,000 bpd)
With a 940,000 bpd capacity and owned by PDVSA, the Paraguana Refinery Complex in Punto Fijo, Falcón, Venezuela, comes in second. Historically handling heavy crude from the Orinoco Belt, this facility is one of the oldest mega-refineries and has been challenged by sanctions and underutilization, but it continues to be an essential asset for Venezuela’s oil-dependent economy.
1. Jamnagar Refinery: India (1,240,000 bpd)
India’s Jamnagar Refinery, run by Reliance Industries Ltd. and situated in Jamnagar, Gujarat, comes in first on the list. This expansive complex, the largest in the world with a capacity of 1,240,000 barrels per day, combines petrochemical production and refining to meet India’s expanding energy needs and export goals. Because of its size, it can handle a variety of crude materials efficiently, making it a vital component of the country’s industrial landscape.
Refining the Future Amid Tensions
The PENGASSAN-Dangote dispute’s resolution emphasizes the necessity of striking a balance between foreign investment and workers’ rights in an industry that is essential to independence. These facilities will adjust with technologies like carbon capture and biofuels when global refining capacity stabilizes following recent setbacks, but their primary function will not change. Efficient operations at refineries like Dangote could boost Nigeria’s energy independence, generate jobs, and save billions of dollars. Refineries are still vital foundations of progress in today’s globe, which is still largely dependent on oil, and they need to be managed fairly and responsibly.
