GlobalData: Planned projects poised to raise global propylene capacity levels
Research and consulting firm GlobalData predicts that global propylene capacity will experience strong growth over the next five years. With some 60 planned projects scheduled to come online between 2015 and 2020, capacity is expected to increase from 111.8 MMtpy to 129.8 MMtpy over that period.
China and the US are the primary drivers. Of 38 planned propylene projects in Asia, China is responsible for 24, and the country’s capital expenditures (CAPEX) will reach $3.62 B over the next five years as it adds 5.6 MMtpy by 2019. The major capacity additions will be made by Fujian Meide Petrochemical Co. Ltd. and Ningbo Fortune Petrochemical Co. Ltd.
Indonesia is positioned to contribute the second highest capacity in Asia with a planned CAPEX of $2.14 B over the next five years that will add 1.6 MMtpy by 2019.
In North America, the major propylene capacity additions will occur in the US. An estimated CAPEX of $2.01 B over the next five years will add about 3.1 MMtpy. The top companies in terms of US capacity additions are BASF SE and C3 Petrochemicals LLC.
Russia and Poland are planning to add significant propylene capacity additions by 2020. An estimated CAPEX of $2.83 B will target an added 1.7 MMtpy. In Africa, Egypt is expected to spend around $0.88 B to add 0.9 MMtpy of capacity that is expected to come onstream by 2020, according to a recent GlobalData report.
The Petronas Refinery and Petrochemical Corp., Lotte Chemical Corp. and C3 Petrochemicals LLC will be the top companies in terms of capacity additions.
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