Asia will contribute 49% of global petrochemical capacity additions by 2030, says GlobalData
Published by Laura Dean,
Asia is forecast to be the major contributor to the growth of the global petrochemical industry by 2030, accounting for around 49% of the global planned and announced petrochemical capacity additions, according to GlobalData, a leading data and analytics company.
The company’s report: ‘H1 2019 Global Petrochemicals Capacity and Capital Expenditure Outlook – Asia and the Middle East to Lead Global Petrochemical Capacity Additions’ reveals that around 1320 planned and announced plants are scheduled to come online, predominantly in Asia and the Middle East.
Within Asia, China plans to add a total capacity of approximately 152.4 million tpy with the help of 305 planned and announced petrochemical plants. The country is expected to spend a capital expenditure (CAPEX) of US$91.5 billion during the period. Hengli Petrochemical and China Petrochemical Corp are the top two companies accounting for the major capacity additions in China.
Dayanand Kharade, Oil & Gas Analyst at GlobalData, explains: “Asia will continue to dominate the global petrochemicals market in the mid-term with both the biggest number of new projects and the largest absolute capacity expansion driven by economic growth of China, India and other Asian countries.
GlobalData identifies the Middle East as the second largest region in terms of capacity additions. Iran will have 152 planned and announced petrochemical plants, adding capacity of around 73.3 million tpy by 2030. The country is expected to spend a total of US$51.1 billion. The National Petrochemical Co, Badr-e-Shargh Petrochemical Co and Sepehr Makran Iran are the top companies accounting for the major capacity additions in Iran.
Kharade adds: “The Middle East will add 20% of global capacity additions, with Iran accounting for around two thirds (67%) of the region’s capacity additions.”
In North America, the majority of capacity additions will be from the US, with planned and announced capacity additions of roughly 66.4 million tpy by 2030 and it is expected to spend a capex of around US$61.6 billion. Major capacity additions will be from Formosa Plastics Group, IGP Methanol LLC and NW Innovation Works Inc.
In the Former Soviet Union (FSU), the majority of capacity additions will be from Russia, with planned and announced capacity additions of about 41.2 million tpy by 2030. Capex for these plants totals US$39.8 billion. Sibur Holding and Rosneft Oil Co are the top companies accounting for the major capacity additions in Russia.
In Africa, majority of the petrochemical capacity additions are in Egypt, with planned and announced capacity additions of about 10.1 million tpy. Capex for these plants totals US$11.7 billion in the coming years. In Europe, Belgium plans to spend US$1.6 billion to add capacity of approximately 1.9 million tpy, which is expected to come onstream by 2030.
In South America, Brazil plans to spend US$9.6 billion in the coming years to add capacity of 8.7 million tpy.
Hengli Petrochemical, Rosneft Oil Co and Zhejiang Rongsheng Holding Group Co Ltd will be the top three companies by planned capacity additions globally over the outlook period.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/22032019/asia-will-contribute-49-of-global-petrochemical-capacity-additions-by-2030-says-globaldata/
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