After further investigation, I believe this is a matter of choice. We have been operating 2 refineries (100,000 BPSD each, sweet & sour) which had been in operation for more than 10 years already. Use CS for both, plant & instrument air. However, we do have filters & dryers downstream of air compressors. So far haven't heard any major problems on the filters, dryers & the entire air system except on one of the air compressor.
Our company standard also doesn't really emphasize on using galvanize or SS. My previous project, as I previously mentioned, specifying galvanized CS...I can't recall why...