Novotel Singapore Clarke Quay
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“China and India to lead Asia’s big petrochemical shift” ~ May 2017, ICIS
Within Asia, the petrochemical scene is going through key structural changes with China and India taking the lead.
With the Chinese government slapping regulations to reduce emissions, China’s coal-to-olefins projects have taken a toll. With participation from the private sector, there is a new wave to construct and upgrade refineries, propane dehydrogenation (PDH) plants, and 10 new naphtha crackers are planned to come on stream in the next 5 years.
Things are on the rise in India, demand growth has been fairly robust in the domestic market. Reliance has ramped up its Jamnager facility and is operating at almost full capacity at the other 3 crackers. State-owned refiners IOC, HPCL and BPCL have also come together with a signed agreement to build the world’s largest 60 million tonne refinery and 10 – 12 million tonne petrochemical complex. In July, the market players also have their focus on how India’s single tax (GST) structure will impact on the country’s petrochemical and polymers sector.
With the two Asian giants dominating the expansion bandwidth, how is this going to affect the balancing of the markets? And meanwhile in South-East Asia, Vietnam and Indonesia have also announced plans for capacity expansion.
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