20 Nov 2019
Posted in Oil & Gas
China to lead global propylene oxide capacity additions by 2023, says GlobalData
China is set to drive capacity growth in the global propylene oxide (PO) industry from planned and announced projects between 2019 and 2023, contributing around 41% of the global growth by 2023, says GlobalData, a leading data and analytics company.
The company’s report, ‘Global Propylene Oxide (PO) Industry Outlook to 2023 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’, reveals that China is expected to have a planned and announced PO capacity of 1.52 million tonnes per annum (mtpa) by 2023. The new-build projects account for the entire capacity additions in the country.
Sowmya Sivaji, Oil and Gas Analyst at GlobalData, says: “China is expected to add seven planned and announced projects during the outlook period. Among these, ‘CNOOC and Shell Petrochemicals Company Huizhou Propylene Oxide Plant 2’, ‘Wanhua Chemical Yantai Propylene Oxide Plant 2’ and ‘Zibo Qixiang Tengda Chemical Company Zibo Propylene Oxide Plant’ are the largest projects, each with a capacity of 0.30 mtpa.”
GlobalData identified the US as the second highest country in terms of capacity additions in the global PO industry. The country will add a capacity of 0.47 mtpa from a planned project, ‘LyondellBasell Industries Channelview Propylene Oxide Plant 2’, which is expected to start operations in 2021.
South Korea stands third with an upcoming PO capacity of 0.40 mtpa by 2023. The entire capacity addition will be from an announced project, ‘SKC Ulsan Propylene Oxide Plant 3’ which is expected to come online in 2021.