DOWN­STREAM TRENDS

Re­fin­ing and Petro­chem­i­cals Mid­dle East brings you an up­date on some of the ma­jor changes tak­ing place in the down­stream sec­tor

Refining & Petrochemicals Middle East - - CONTENTS -

An up­date of some of the ma­jor changes tak­ing place in the UH¿QLQJ DQG SHWURFKHPLFDO

in­dus­try

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.

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