Lee Nichols, Vice President, Content/Editor-in-Chief
If you were to review any forecast for global thermoplastics demand to 2050—high-density polyethylene (PE), low-density PE, polypropylene, polyvinyl chloride and polyethylene terephthalate, among others—chances are that you will see a steady rise in consumption. For example, global thermoplastics demand is forecast to increase from approximately 483 MMtpy in 2020 to nearly 399 MMtpy in 2030 and up to more than 589 MMtpy by 2050, according to data from Statista.1
Regardless of outside forces calling for an end to the use and production of oil, gas and petrochemicals, the fact remains that demand for plastics—especially from developing countries in Asia—will continue to steadily increase over the next few decades. With this significant increase in plastics demand, how can petrochemical producers juggle the need to satisfy global plastics product demands vs. adhering to more stringent calls for decarbonization, increased energy efficiency and a reduction in environmental footprint?
In actuality, the work to decarbonize operations in the petrochemicals industry has been a road well-traveled for some time. From novel processing technologies and capital investments to alternative energy generation, petrochemical producers and technology licensors have been/are proactively investing in and incorporating new pathways to limit their environmental footprint, increase energy efficiency, decarbonize operations and create circular economies.
Examples include new processing technologies to recycle plastics, researching the use of electrification (e.g., e-burners) to limit carbon emissions, investing in carbon capture technologies, increasing the production of ammonia and methanol as a fuel for the mobility and marine sectors (processing routes include the production of green ammonia through electrolysis to create a zero-carbon fuel), incorporating renewable energy to power processing units and/or replacing fossil-fuel burners with hydrogen, and many others.
Global petrochemicals projects breakdown. So, where is the petrochemicals industry heading from a capital expenditures perspective? At the time of this publication, Gulf Energy Information’s Global Energy Infrastructure (GEI) database was tracking more than 330 active petrochemical projects around the world. These projects represent approximately $660 B in capital expenditures by 2030.
When broken down by region, most active projects are in Asia, followed by the Middle East. Both regions are investing heavily in new petrochemicals capacity to satisfy increasing regional and global demand. A breakdown in active petrochemicals market share by region is below:
When broken down by activity level, more than 40% of active projects globally are under construction, followed by projects in the planning stage (31%) and proposed (28%).
Petrochemicals technologies focus to the future of the industry and the world. With the stark increase in petrochemicals demand globally and the sizable capital investments being made, petrochemical producers are finding new pathways to optimize operations. This trend has been a staple of Hydrocarbon Processing's coverage for decades and is the primary focus of this month’s issue.
This issue will highlight some of the advancements in petrochemicals processing technologies and how they are shaping the industry moving forward. This discussion is imperative as the world continues to demand more thermoplastics balanced by the petrochemical industry’s job to satisfy that demand in the safest, most efficient and sustainable way possible. HP
LITERATURE CITED