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Int’l Petrochem Capacity to Grow

Int’l Petrochem Capacity to GrowInt’l Petrochem Capacity to Grow

Led by Asia and the Middle East, the global petrochemicals market capacity is poised to grow from 1,547.2 million tons per annum in 2017 to 1,931.5 mtpa in 2026, a leading data and analytics company, GlobalData, said.

The company's latest report, "Semi-Annual Global Petrochemicals Capacity and Capital Expenditure Outlook" reveals that around 982 plants are slated to come on stream, 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 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, “China, due to its increasing petrochemicals demand, is contributing to large capacity additions, in Asia.

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, a 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 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.

 

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