Global growth projected in petrochemical market
GlobalData reported that Asia and the Middle East are expected to lead the way in petrochemical expansion over the next decade.
The global petrochemicals market capacity, led by Asia and the Middle East, is poised to grow from 1,547.2 million tons per annum (mtpa) in 2017 to 1,931.5 mtpa in 2026, according to GlobalData. The company’s report, ‘Semi-Annual Global Petrochemicals Capacity and Capital Expenditure Outlook‘ reveals 982 planned and announced plants are slated to come online, primarily in Asia and the Middle East, over the nine-year period. Asia, the Middle East, and North America will be the top regions contributing to capacity additions during the outlook period.
Within Asia, with 244 out of the total 482 planned and announced petrochemical plants and a total capacity of 98.2 mtpa by 2026, China is the top country. Capital expenditure (capex) for these plants in China is estimated to total $51.6 billion. China Petrochemical, Zhejiang Petrochemical and Wanhua Chemical are the top three companies accounting for the major capacity additions in China.
Dayanand Kharade, petrochemicals research manager at GlobalData, said, "In Asia, China, due to its increasing petrochemicals demand, is contributing to large capacity additions. The country will add more than half the number of upcoming projects in Asia. In the Middle East, Iran with its feedstock advantage is set to have large capacity additions, primarily targeting exports to Asia and Europe."
In the Middle East, the majority of capacity additions will be in Iran, with planned and announced capacity additions of around 63 mtpa by 2026. Capex for these plants totals $27.9 billion. Sepehr Energy is the top company accounting for the major capacity additions in Iran.
The US has 98 planned and announced petrochemical plants, with a total capacity addition of roughly 63 mtpa by 2026. The capex for these plants is $52 billion. Major capacity additions will be from IGP Methanol and NW Innovation Works.
In South America, Venezuela plans to spend $1.5 billion in the coming years to add a capacity of 2.1 mtpa. In the former Soviet Union, the majority of capacity additions will be in Russia, with planned and announced capacity additions of approximately 24.6 mtpa by 2026. Capex for these plants totals $23.2 billion. Sibur Holding is the top company accounting for the major capacity additions in Russia.
In Africa, the majority of petrochemicals capacity additions will be in Egypt, with planned and announced capacity additions of around 10.1 mtpa by 2026. Capex for these plants totals $12 billion in the coming years. In Europe, Poland plans to spend $800 million to add capacity of roughly 0.9 mtpa, which is expected to come on-stream by 2026.
– Edited from a GlobalData press release by CFE Media.
Original content can be found at Oil and Gas Engineering.
Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our CFE Media editorial team and getting the recognition you and your company deserve. Click here to start this process.