Some of the major new projects that are likely to be commissioned either in 2008 or later are:
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ExxonMobil has initiated construction of its second petrochemical plant
adjacent of the existing petrochemical complex in Singapore. The project is expected to come on-stream in early 2011.
The new petrochemical project will produce 1 million tpa of ethylene, 450,000 tpa of PP and 300,000 tpa of specialty elastomers. |
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Jam Petrochemical Complex in southern Iran will start the first phase of its mega project by March 2008.
It will have the capacity to produce over 1.7 million tons of ethylene, propylene and olefins. Related
downstream industries will commence 1-3 months after the complex becomes operational.
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National Petrochemical Company (NPC) announced that 11 petrochemical projects will come on stream in Iran in
the current year. The projects that will become operational are:
* Carbon monoxide andacetic acid project.
* First phase of isocyanate project.
* The second pure terephthalic acid (PTA) andpolyethylene terephthalate (PET) projects.
* LDPE project.
* PC project.
The projects to be implemented in Mahshahr Special Economic Petrochemical Zone will include 800,000 tpa
of ethylene, 800,000 tpa of PE, 400,000 tpa of PP and 700,000 tpa of paraxylene. The project is expected to start up in early 2009.
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Total has started production at a new PP production line at its Daesan plant in South Korea. The French group
owns a 50% interest in the plant in a joint venture with Samsung. The new line has capacity of 300,000 tpa and
its start-up increases the total PP capacity of the plant to 550,000 tpa. A major expansion project at the
Daesen site was started in October 2005. The naphtha cracker at the site has also been recently completed
with the revamping of the associated downstream units, which has boosted the ethylene capacity of the
cracker from 600,000 tpa to 820,000 tpa.
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Though polymer markets are rather matured in terms of new polymer molecules, no new polymers has been developed. Only development in additives, applications and adoption of newer/better technologies from other spheres, can provide the stimulus and an opportunity for polymers to grow. Biopolymer continues to march ahead albeit at a rather small volumes.
The Middle East region is increasing its presence in petrochemical and polymer sectors. After Saudi Arabia, other
countries in the region such as Kuwait, Iran and Egypt are setting up petrochemical projects. The abundant availability
of ethane gas in the Middle East will enhance the cost advantage as time progresses and the players in the region will
naturally gain higher market shares. Higher availability of ethane gas will help the Middle East region become the low
cost polyethylene producers in the World, replacing USA's supremacy. The reason for the region's prominence can be
attributed to easy access to feedstock, access to the latest technology, and strategic location at the intersection
of the Americas, Asia and the rest of the world. The region is expected to contribute more than 60 million tons of
petrochemicals to the world in 2007.
China has accelerated its quest for newer capacities not only in polymers but also in downstream projects of plastics
processing. The huge global and domestic demand for China's polymer products has helped multiply growth in China in
the last decade to become the global hub for imports, processing, exports and consumption of plastics. Trailing behind
only USA, China has moved on to become the world's second largest producer of plastic products. The Chinese polymer market has
been growing at more than 10% for the last decade compared to the global growth rate of 4-5%. Global
manufacturers have moved in or are in the process of setting up manufacturing plants in China with mega investment
outlays in the country's petrochemical and polymer industries. Slowly, it is bridging the gap between imports and
local availability. 2010 will see China to be not only self sufficient in PVC but also become a sizeable exporter.
China, because of lower cost of calcium carbide process that it uses predominantly for PVC manufacturing will be an
aggressive exporter.
China will
continue to expand in order to become more self sufficient in the requirements of polymers. All major global players
in the polymer business are present in China and are increasing their capacities. Some new joint ventures with Chinese
majors will continue to form as seen in the last few years. Global chemical and oil giants including Dow Chemical,
Dupont, BASF, Bayer, Chevron Texaco, Shell, Mitsubishi Chemicals and BP, have already invested or plan to invest in
China. With this, China's plastics industry seems poised for further growth. Annual investment in China is reported at
US$30 bln, out of which 50-60% is from foreign investors Consolidation has been on the forefront for the American and European players. A shift in demand to Asia, Russia and the
other Eastern European countries from North America and Europe is changing the pattern of manufacturing.
2008 may shape up almost same as that observed in 2005, 2006 and 2007. China and India will continue to support an increase
in demand of polymers. Asian countries are expected to contribute to polymer consumption growth, maintaining
global growth almost at the same rate of 5-6%. Polymer business in the Asian region is expected to grow by 7-8% in 2008,
with both China and India expected to grow at about 10%. North America may slow down but will show a growth of 3-4% in
polymer business in 2008. Russia, East European countries and some of the South American countries will show good growth
(more than 5-6%) in 2008.
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