China continues to drive global propylene capacity growth

GlobalData’s latest report, Q2 2018 Quarterly Global Propylene Capacity and Capital Expenditure Outlook – China Continues to Drive Global Capacity Growth states that the global propylene capacity is poised to see considerable growth over the next nine years, potentially increasing from 121.3 million tonnes per annum (mtpa) in 2017 to 148.1mtpa in 2026. Around 96 planned and announced plants are slated to come online in the next nine years, primarily in Asia and the Middle East.

In Asia, China has 31 planned and announced propylene plants, with a total capacity of about 10.0mtpa by 2022. Capital expenditure (capex) for these plants is $5.63bn. Major capacity additions will be from Oriental Energy Co, followed by Zhejiang Petrochemical Co.

In the Middle East, Iran has 14 planned and announced propylene plants, expected to start operations with total capacity of about 2.3mtpa by 2024. Capex for these plants totals $2.24bn over the next eight years. Major capacity additions will be from The National Petrochemical Company.

In the Former Soviet Union, most propylene capacity additions are in Russia, with capacity of about 1.2mtpa by 2022. Capex for these plants totals $1.07bn by 2022. Far East Petrochemical Company and Sibur Holding are the top companies accounting for the major capacity additions in Russia.

Global planned and announced propylene capacity additions by country (mtpa)

The US has three planned and announced propylene plants, with a capacity of about 1.2mtpa over the next eight years and plans to spend $0.90bn. Major capacity additions will be from Formosa Plastics Group.

In South America, the propylene capacity additions is from Bolivia, with planned and announced capacity additions of about 0.4mtpa by 2021. Capex for these plants totals $0.34bn. In Africa, Egypt plans to spend $1.30bn and add capacity of about 1.4mtpa, expected to come onstream by 2021.

In Europe, the major capacity addition is from Belgium and plans to spend $0.71bn and add capacity of 0.7mtpa, expected to come onstream by 2021.

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