The capacity for global petrochemicals is set to grow considerably over the next five years, increasing from 1,464 million metric tonnes a year (mmtpa) in 2015 to 1,708 mmtpa by 2020, according to research and consulting firm GlobalData.
Asia will lead the charge, with more than half of all planned projects, says the company’s latest report, which shows that around 647 projects in total are set to come online in the next five years – driven primarily by China, the US and Iran.
China is responsible for 176 projects, with a total capacity of 64 mmtpa by 2019.
China Petroleum & Chemical Corporation, Shenhua Group Corporation Limited and China Coal Energy Company Limited will be the top three companies behind major capacity additions in China during the forecast period.
GlobalData’s report also highlights that petrochemical plant proposals across 10 key countries would increase global capacity for petrochemicals by over 1,000 mmtpa by 2019, approximately equivalent to two thirds of total capacity in 2015.
These projects represent over US$140 billion of estimated capital expenditure. Apart from the aforementioned Chinese companies, the report details projects from companies such as Petroliam Nasional Berhad, Indian Oil Corporation Limited, Reliance Industries Limited, GigaMethanol B.V, Sepehr Energy Corporation, Carbon Holdings, Lotte Chemical Corporation, and SIBUR Holding with projects leading major capacity additions.