Asia is expected to lead the global ethylene industry capacity additions with a share of 54.8% by 2027, by gaining capacities from new-build and expansion projects between 2023 and 2027, according to GlobalData, a data and analytics company.
GlobalData’s latest report, ‘Ethylene Industry Capacity and Capital Expenditure (CapEx) Forecast by Region and Countries Including Details of All Active Plants, Planned and Announced Projects, 2023-2027’ reveals that the total ethylene capacity of new-build and expansion projects in Asia is expected to be 46.35 million tonnes per annum (mtpa) by 2027. Increased demand for ethylene derivative products in the packaging and chemicals industries is the key factor for the ethylene industry’s growth in Asia.
Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “For the upcoming new build projects, Asia is expected to add a capacity of 43.72 mtpa from 40 planned and announced projects, whereas, for the expansion of the existing ethylene projects, the region is expected to add a capacity of 2.63 mtpa from nine planned and announced projects.”
China and India are the key countries in Asia in terms of ethylene capacity additions. The main capacity addition in China will be from a planned project, Shandong Yulong Petrochemical Longkou Ethylene Plant 1, with a capacity of 3 mtpa. It is expected to commence production of ethylene in 2024.