Refining and Petrochemicals Middle East brings you an update on some of the major changes taking place in the downstream sector
An update of some of the major changes taking place in the UH¿QLQJ DQG SHWURFKHPLFDO
Asia is forecast to be the major contributor to the growth of the global petrochemical industry by 2026, accounting for around 49% of the global planned and announced petrochemical capacity additions, according to leading data and analytics company Globaldata.
The company’s report – H2 2018 Global Petrochemical Capacity and Capital Expenditure Outlook – Rosneft Oil Co Drives Global Petrochemical Capacity Additions – reveals that around 1,158 planned and announced plants are scheduled to come online, predominantly in Asia and the Middle East, over the next nine years.
Within Asia, China plans to add a total capacity of approximately 118.1 million tonnes per annum (mtpa) by 2026 with the help of 257 planned and announced petrochemical plants. Capital expenditure (capex) for these plants totals $89.5bn over the next nine years. China Petrochemical Corp, Hengli Petrochemical (Dalian) Co, and Zhejiang Rongsheng Holding Group Co are the top three companies accounting for the major capacity additions in China.
Dayanand Kharade, oil and gas analyst at Globaldata, comments: “Asia will 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. Asia will add almost half of global capacity additions, with China making the largest contribution.”
Globaldata identifies North America as the second highest in terms of capacity additions. The US has 109 planned and announced petrochemical plants, adding capacity of around 63.1mtpa by 2026. The capex for these plants is $64.8bn by 2026. Major capacity additions will be from IGP Methanol and NW Innovation Works. In the Middle East, the majority of capacity additions are in Iran with planned and announced capacity additions of roughly 59.7mtpa by 2026. Capex for these plants totals $49.8bn by 2026. National Petrochemical Co, Sepehr Makran Iran, and Sepehr Energy Corp are the top companies accounting for the major capacity additions in Iran.
In the Former Soviet Union (FSU), the majority of capacity additions are in Russia with planned and announced capacity additions of approximately 25.9mtpa by 2026. Capex for these plants totals $33.8bn by 2026. Sibur Holding and Rosneft Oil Co are the top companies accounting for the major capacity additions in Russia.
In Africa, petrochemical capacity additions are in Egypt, with planned and announced capacity additions of roughly 9.9mtpa by 2026. Capex for these plants totals $12.8bn in the coming years. In Europe, Belgium plans to spend $0.7bn to add capacity of around 0.8mtpa, expected to come onstream by 2026.
In South America, Brazil plans to spend $8.2bn in the coming years to add capacity of 7.1mtpa, expected to come onstream by 2026.
The report also states that Rosneft Oil Co, Saudi Arabian Oil Co, and China Petrochemical Corp are the top three companies by planned capacity additions globally over the outlook period.