Global low-density polyethylene capacity will grow to 34.2 mtpa – GlobalData

*Low-Density Polyethylene.

*Low-Density Polyethylene.

31 May 2016, Sweetcrude, London – Global Low-Density Polyethylene (LDPE) capacity could see considerable growth over the next five years, with announced planned projects increasing in capacity from 26.2 million tons per annum (mtpa) in 2015 to 34.2 mtpa by 2020, according to research and consulting firm GlobalData.

The company’s latest report* states that 27 planned projects have been announced to come online over the next five years, driven mostly by the US and India.

North America is responsible for seven planned LDPE projects. Six of these are in the US and are set to add capacity of 2.3 mtpa by 2020. The country’s capital expenditure for such projects will be US$4.34 billion over the next five years, and the top companies accounting for major capacity additions are Badlands NGLs, LLC and Sasol Limited.

In Asia, India will be responsible for major LDPE capacity additions, with proposed additions of 1.2 mtpa over the next five years, which will accumulate a cost of around US$0.55 billion by 2020. Hindustan Petroleum Corporation Limited and Reliance Industries Limited are the top two companies accounting for major capacity additions in the country.

In the Middle East, Iran has three planned LDPE projects adding capacity of about 0.9 mtpa by 2018, and its capital expenditure will be $US0.65 billion over the next five years.

In Europe, Russia will be responsible for major LDPE capacity additions, where the capacity of about 0.4 mtpa is planned by 2017, with US$0.14 billion in capital expenditure by 2020.

About the Author