Baku, Azerbaijan, Dec. 7
By Rashid Shirinov – Trend:
Asia is forecast to be the major contributor to the growth of the global petrochemical industry by 2026, accounting for around 49 percent of the global planned and announced petrochemical capacity additions, reads a report by the leading data and analytics company GlobalData.
The company noted that around 1,158 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 118.1 million tons per annum (mtpa) by 2026 with the help of 257 planned and announced petrochemical plants. Capital expenditure (capex) for these plants totals $89.5 billion over the next nine years,” reads the report.
Dayanand Kharade, Oil & Gas Analyst at GlobalData, noted that Asia will dominate the global petrochemicals market in the mid-term with both the biggest number of new projects and the largest absolute capacity expansion driven by economic growth of China, India and other Asian countries.
GlobalData identifies North America as the second highest in terms of capacity additions. The US has 109 planned and announced petrochemical plants, adding capacity of around 63.1 mtpa by 2026. The capex for these plants is $64.8 billion by 2026.
“In the Middle East the majority of capacity additions are in Iran with planned and announced capacity additions of roughly 59.7 mtpa by 2026. Capex for these plants totals $49.8 billion by 2026,” reads the report.
In the Former Soviet Union (FSU) the majority of capacity additions are in Russia with planned and announced capacity additions of approximately 25.9 mtpa by 2026. Capex for these plants totals $33.8bn by 2026.
GlobalData added that in Africa, petrochemical capacity additions are in Egypt, with planned and announced capacity additions of roughly 9.9 mtpa by 2026. Capex for these plants totals $12.8 billion in the coming years. In Europe, Belgium plans to spend $0.7 billion to add capacity of around 0.8 mtpa, expected to come onstream by 2026.
In South America, Brazil plans to spend $8.2 billion in the coming years to add capacity of 7.1 mtpa, expected to come onstream by 2026, according to the report.
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