Upcoming PE capacities trigger oversupply woes across globe
In China, two PE capacities have already been started up in April-May while there are three more to come on stream by June-July period.
Market sources informed that Jiangsu Sailboat Petrochemical Co. Ltd started up its new LDPE/EVA plant in Jiangsu on May 2017 while Zhong Tian He Chuang’s new LDPE plant in Inner Mongolia commenced operations on April 2017.
Shenhua Ningmei will start up its HDPE/LLDPE swing line in Ningxia on July 2017 while Jiutai Energy’s new HDPE/LLDPE swing line in Inner Mongolia is planned to be started up during the same period.
In addition, CNOOC’s Huizhou Refining & Chemical Corporation’s new HDPE/LLDPE swing line in Guangdong is expected to start commercial runs on June 2017.
When above mentioned start-ups are completed, an additional capacity of 1.86 million tons/year will be added to the China’s total PE capacity in 2017.
India’s Reliance, meanwhile, is readying to start up its new PE complex which consists of a HDPE/LLDPE swing unit and a LDPE unit in Jamnagar in July.
It is also vital to remind that Reliance has recently completed the world’s largest ethane project, enabling them to import large-scale ethane from the US to feed its crackers in Dahej, Hazira and Nagothane. Reliance is the first company to import large-scale ethane from North America to their crackers in India.
India’s OPaL had earlier started up two HDPE/LLDPE swing lines in January and also launched a standalone HDPE line in Q1 2017.
Iran’s Kordestan Petrochemical started up a new LDPE plant in Sanadaj in late March while Bushehr Petrochemical’s new HDPE/LLDPE swing plant is expected to start operations in two phases during 2017-2018. According to ChemOrbis Production News, Iran has 9 more new PE plants planned to start up in 2018.
A considerable capacity addition is also expected in the US particularly in the second half of this year. Dow Chemical’s new PE unit in Texas is expected to become fully operational in Q4 2017. Chevron Phillips Chemical’s two new PE plants set to come online in mid 2017. The commercial runs at Sasol and Ineos’ joint venture HDPE plant in Texas are slated to start in the last quarter of this year. ExxonMobil also has two new PE plants to start up in Q3.
To see further details about the most updated news of new capacities as well as shutdowns and restarts around the globe at a glance, please follow ChemOrbis PE Production news .
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