Global polyethylene production capacity set for boom by 2025

SINGAPORE/SEOUL, Aug 23 (Reuters) - Petrochemical makers around the world are set to churn
out more polyethylene, a key ingredient for plastics used in everything from toys to piping,
through 2025, with more than half of the new supplies coming from the United States and the
Middle East.
New output capacity for polyethylene is expected to outstrip demand by 3 million tonnes by
the end of 2020, compared to overcapacity of 545,000 tonnes in 2019, according to data from
energy consultancy Wood Mackenzie.
In Asia, production is set to increase in China, South Korea and Malaysia next year.
The global expansion could add pressure to Asia's petrochemical profits, which have plunged
to their lowest in months, weighed down by ongoing trade dispute between the United States and
China.
Below is a list of planned capacity expansion from the United States, Middle East and Asia.


Country Company Estimated New Capacity in Estimated
'000 tonnes start-up
* US, Texas Formosa Plastics 750 2019
* US, Louisiana Sasol 900 2019
* US, Texas Lyondell Basel 550 2019
* US, Texas Exxon Mobil Chemicals 650 2020
* US, Texas Borealis 625 2021
* US, Pennsylvania Shell Chemicals 1500 2022
* US, Gulf Coast Dow Chemicals 600 2022-2023
* Canada, Ontario Nova Chemicals 450 2021
* Mideast, Oman Orpic 500 2020
* Mideast, Ruwais Borouge 4500 2021-2025
* China Jiutai Energy 300 Q3 2019
* China Ningxia Baofeng Energy 300 Q3 2019
* China Hua Tai Sheng Fu 300 Q3 2019
* China Zhejiang Petrochemical 300 Q3 2019
* China Hengli Petrochemical 400 Q4 2019
^ S Korea, Daesan Hanwha Total 400 Dec 2019
^ S Korea, Yeosu Daelim Industrial 250 Q4 2020
^ S Korea, Yeosu LG Chem 800 H1 2021
^ S Korea, Daesan Hyundai Chemical 850 H2 2021
^ S Korea, Yeosu GS Caltex 500 End 2021
+ Indonesia Chandra Asri 400 Q4 2019
# Malaysia, Pengarang Petronas-Saudi 750 2019
# Russia, Tobolsk Zapsibneftekhim 1500 2019

Sources:
* From Frost &
Sullivan
+ From Reuters'
industry sources
# From The pH Report
^ From KPIA




(Reporting by Seng Li Peng in Singapore and Jane Chung in Seoul; Editing by Kenneth Maxwell)


2019-08-23 04:52:10

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