Asia to contribute over half of global propylene capacity additions by 2026

Asia is forecast to be the major contributor to the growth of the global propylene industry between 2017 and 2026, accounting for around 55% of the global planned and announced propylene capacity additions by 2026, according to a leading data and analytics company, GlobalData. According to new findings released by the firm, around 111 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 11.0-mtpa by 2026 with the help of 33 planned and announced propylene plants. Capital expenditure (capex) for these plants totals $7.33-bn over the next nine years. Major capacity additions will be from Oriental Energy Co. Ltd.

“China will expand its propylene capacity at the fastest pace than of any country over the next five years,” pointed out Mr. Dayanand Kharade, Petrochemicals Analyst at GlobalData. “Despite being the largest producer of propylene, it is unable to meet its own rapidly growing domestic demand, forcing the construction of more capacity,” he added.

The US plans to spend $0.90-bn on three planned and announced propylene plants, with a capacity of around 1.2-mtpa during the outlook period. Major capacity additions will be from Formosa Plastics Group, according to GlobalData.

In the Former Soviet Union (FSU), most propylene capacity additions are in Russia, with capacity of approximately 1.6-mtpa by 2026. Capex for these plants totals $1.66-bn during the outlook period. Sibur Holding is the top company, accounting for the major capacity additions in Russia.

Brazil and Bolivia together lead in South America with planned and announced capacity additions of around 1.2-mtpa by 2026. Capex for these plants totals $1.10-bn. In Africa, Nigeria plans to spend $1.64-bn to add a capacity of roughly 1.7-mtpa, which is expected to come on-stream by 2026.

In Europe, Belgium plans to spend $0.71-bn on the addition of a capacity of 0.7-mtpa, which is expected to come on-stream by 2026.

The report identifies Dangote Group, Oriental Energy Co. Ltd., and Formosa Plastics Group as the top three companies globally in terms of planned capacity additions over the outlook period.