Issue 14/2016 - Global Chemicals Quick Facts

Global Chemicals Quick Review

The global methionine market demand will grow rapidly

The global methionine market will continue to grow
due to megatrends such as increasing global population and increasing demand for protein and meat products.
According to IHS Chemical, the current global methionine market demand is about 880,000 tons, the growth rate is higher than the global average GDP, which is mainly distributed in North America, China and Western Europe and other countries and regions, accounting for 24%, 18% and 16%
respectively.
At present, methionine manufacturers are already increasing production capacity to cope with the increase
in market demand.
Sumitomo Chemical is expanding its methionine plant in Niihama, Japan, to add 100,000 tons of new capacity, which is expected to be completed and put into operation in mid-2018, when the company's global methionine production capacity will reach 250,000 tons
.
Evonik has decided to invest EUR 500 million (US$556 million) in a second methionine production plant on Singapore's Jurong Island, with a design capacity of 150,000 tons, which will start production in 2019, bringing its methionine production capacity to 580,000 tons
.

The big plan of capacity expansion for small Asian refining countries

The focus on downstream capacity construction in Asia such as refining and petrochemicals is mainly concentrated in major consumer countries such as China and India, which account for more than half of
all new downstream projects in the region.
Over the past decade, China's rapid economic growth has been unprecedented, and India has begun to become a new global oil demand hub, with its refining capacity more than tripling, from 1.
2 million b/d in 1998 to more than 4.
6 million b/d
today.
According to India's Twelfth and Thirteenth Five-Year Plans, India's refining capacity will reach about 366 million tons, or more than 6.
7 million bpd
, by the early 2020s.
In addition, Bangladesh, Cambodia, Myanmar and Thailand have also announced major downstream capacity expansion plans, and the four countries will invest billions of dollars in downstream capacity expansion, including new refining and petrochemical capacity to meet growing demand for oil and petrochemicals, and new liquefied natural gas (LNG) import capacity to fuel the power generation industry
.

Saudi Aramco and SABIC agreed to study petrochemical projects

Saudi Basic Industries Corporation (SABIC) and Saudi Arabian National Oil Company (Saudi Aramco) have signed an agreement to conduct a feasibility study on a petrochemical project proposal, which is scheduled to be completed
by early 2017.
Saudi Aramco CEO Amin Nasser said the proposed project in the Red Sea city of Yanbu would significantly increase Saudi Arabia's production of
petroleum-based petrochemicals.
The project will process petrochemicals directly from crude oil, rather than refining petroleum into transportation fuels
first.
SABIC has previously said the project could cost up to $30 billion and that the plant would be operational
by the end of 2020.

In 2014~2035, the average annual growth rate of global natural gas demand will reach 1.
6%

According to the latest research report of the International Gas Association (Cedigaz), driven by emerging markets, power production and industrial applications, global natural gas demand is expected to grow
at an average annual rate of 1.
6% in 2014~2035.
In its 2016 Medium- and Long-Term Gas Market Outlook report, the International Gas Association highlighted the growing
importance of natural gas as a transition fuel in the global transition to renewable energy systems.
The association pointed out that considering that the world has huge low-cost coal resources, to promote the conversion of coal to natural gas, governments need to take effective measures
.
The International Gas Association's forecast for natural gas demand is based on energy-related CO2 emissions growing
at an average annual rate of 0.
3%.