Asia is set to lead in global ethylene glycol industry capacity additions with a 77% share from new-build and expansion projects beginning in 2023 and running through 2027, according to British data and analytics company GlobalData.
The company's latest report, Ethylene Glycol Industry Capacity and Capital Expenditure (CapEx) Forecast by Region and Countries Including Details of All Active Plants, Planned and Announced Projects, 2023-2027, revealed that the total ethylene glycol capacity of new-build and expansion projects in Asia is expected to total 12.16 million tonnes per annum (mtpa) by 2027.
'For the upcoming new build projects, the region is expected to add a capacity of 11.98 mtpa from 14 planned and announced projects,' Nivedita Roy, oil and gas analyst at GlobalData, was quoted as saying in a statement.
'For the expansion of the existing ethylene glycol projects, the region is expected to add a capacity of 0.18 mtpa from two planned and one announced project,' she added.
According to GlobalData, increased demand for ethylene glycol in the automotive industry is the key factor driving its growth in Asia.
India and China are the primary countries in the region in terms of ethylene glycol capacity additions. The main capacity addition in India will be from an announced project, Reliance Industries’ Jamnagar Ethylene Glycol Plant 2, with a capacity of 4.50 mtpa. It is expected to commence production in 2026, according to the company.
Ethylene glycol is used in many commercial and industrial applications, including antifreeze and coolant. Additionally, it is employed in the natural gas sector to eliminate water vapor from natural gas before further processing.
It is also well known for being produced using carbon monoxide in nations with abundant coal reserves and lax environmental restrictions.
'In China, Jiaxing Sanjiang Petrochemical Company's Jiaxing Ethylene Glycol Plant 2 will be the main contributor to the country’s capacity additions. With a capacity of 1 mtpa, it is expected to come online in 2023,' Nivedita concluded.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr