China and the US to drive global propylene capacity growth

GlobalData’s latest report, ‘Quarterly Global Propylene Capacity and Capital Expenditure Outlook – China and the US to Drive Global Capacity Growth’ states that the global propylene capacity is poised to see considerable growth over the next nine years, potentially increasing from 121.7 million tonnes per annum (mtpa) in 2017 to 143.4mtpa in 2026. Around 87 planned and announced plants are slated to come online in the next nine years, primarily in Asia and the Middle East.

In Asia, China has 29 planned and announced propylene plants, with a total capacity of about 7.8mtpa by 2022. Capital expenditure (capex) for these plants is US$3.85 billion. Major capacity additions will be from Zhejiang Petrochemical Co.

In the Middle East, Iran has 13 planned and announced propylene plants, expected to start operations with total capacity of about 2.3mtpa by 2022. Capex for these plants totals US$1.93 billion over the next nine years. Major capacity additions will be from the National Petrochemical Company and the Mehr Petrochemical Company.

The US has five planned and announced propylene plants, with a capacity of about 2.4mtpa over the next nine years and plans to spend US$1.87 billion. Major capacity additions will be from the Formosa Plastics Group

Global planned and announced ammonia capacity additions by region (mtpa)

Source: Petrochemical Analytics                                                                                                                                                                    © GlobalData

In the Former Soviet Union, most propylene capacity additions are in Russia, with capacity of about 1.1mtpa by 2022. Capex for these plants will total US$1.07 billion by 2022. The Far East Petrochemical Company and Sibur Holding are the top companies accounting for the major capacity additions in Russia.

In South America, major propylene capacity additions are being made in Bolivia, with planned and announced capacity additions of about 0.4mtpa by 2021. Capex for these plants totals US$0.38 billion. In Africa, Egypt plans to spend US$1.47 billion and add capacity of about 1.4mtpa, which is expected to come on-stream by 2021.

In Europe, Belgium plans to spend US$0.81 billion and add capacity of 0.7mtpa, which is expected to come on-stream by 2022.

 

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