In 2023, The Global Polyethylene Production Capacity Will Exceed 157 Million Tons Per Year, And China's Growth Rate Will Top The List

GlobalData said that in the next few years, global polyethylene production capacity is expected to continue to grow significantly, and it is expected to reach 157.02 million tons per year in 2023. Led by Asia and North America, global polyethylene production capacity will grow strongly.

Asia

It is expected that Asian polyethylene production capacity will reach 57.1 million tons per year in 2023, with an average annual growth rate of about 7.2% in recent years.

Dayanand Kharade, Oil and Gas Analyst at GlobalData, said: “In Asia, demand for polyethylene is expected to continue to grow in China, with its large population and growing economy. To meet this demand, China will significantly increase capacity. China will account for the more than 40% of ethylene capacity.”

North America

GlobalData points out that North America is the second largest region in the world for polyethylene industry capacity additions. It is expected to reach 33.82 million tons/year in 2023, with a growth rate of 7.6% in recent years. Most of the added polyethylene capacity will come from the United States, with a capacity of about 9.35 million tons/year by 2023. Major additions will come from the plant, ExxonMobil's Beaumont high-performance polyethylene plant and Chevron Phillips Chemical's Pasadena polyethylene plant, with annual capacities of 1.3 million and 9.9 million tons, respectively.

Middle East

In the Middle East, polyethylene production capacity is expected to reach 28.52 million tons/year in 2023, with a CAGR of 6.3% in recent years. By 2023, Iran's oil production capacity will increase by about 5.54 million tons per day. The new capacity will mainly come from the NPC Hormozgan Polyethylene Complex 1 and NPC Hormozgan Polyethylene Complex 2, which will have a capacity of 500,000 tons/year by 2023.

Kharade added: "For North America and the Middle East, low-cost, abundant natural gas supply is the main reason for the surge in polyethylene production capacity. In addition to the raw material advantage, the target export to other US countries is also the reason for the substantial increase in production capacity in the United States."

Russia

The polyethylene production capacity in Russia is expected to reach 9.16 million tons/year in 2023, with a compound growth rate of 22.6% in recent years. Russia is expected to become the largest oil producer in the region by 2023, with an annual capacity increase of 4.63 million tons. The new capacity is mainly from the Nakhodka polyethylene plant of Far East Petrochemical Co., Ltd., which will reach 880,000 tons/year by 2023.

Africa

Africa is the fifth highest, and is expected to reach 4.7 million tons/year in 2023, with a compound growth rate of 16.6% in recent years. Egypt leads Africa in capacity additions and is expected to add 1.35 million tonnes/year of capacity by 2023.

Badlands NGLS, Oil and Gas and Royal Dutch Shell are the top three global companies planning to increase capacity in the coming period.

In 2022, 11 sets of polyethylene plants are planned to be put into operation in China, with a total production capacity of 4.05 million tons per year. By the end of 2021, my country has a polyethylene production capacity of 27.73 million tons/year.