The petrochemicals market consists of
sales of petrochemicals by entities (organisations, sole traders, or
partnerships) that produce acyclic (i.e., aliphatic) hydrocarbons like
ethylene, propylene, and butylene from refined petroleum or liquid hydrocarbons
and/or cyclic aromatic hydrocarbons like benzene, toluene, styrene, xylene,
ethyl benzene, Ethylene, propylene, benzene, xylene, styrene, toluene, cumene,
and other petrochemicals make up the petrochemicals market.
The Organization of Petroleum Exporting
Countries (OPEC) has a large volume of feedstock or raw materials available,
and the rapid development of shale gas exploration in the North American
region, primarily in the United States and Canada, is expected to create a
highly conducive environment for growth
of the global petrochemicals market. China is one of the world's top
petrochemical consumers. The rapid rise of numerous end-use sectors is
predicted to boost demand for petroleum products, particularly in Asia Pacific
growing nations like India and China. According to the Energy Information
Administration (EIA) of the United States, total liquid fuel consumption in
Asia Pacific reached 33.3 million barrels per day (bpd) in 2017, with China
accounting for 80% of the region's consumption. Furthermore, significant
advancements in shale gas technologies, such as hydraulic fracturing, are being
investigated in the United States and Canada to extract petroleum. As a result
of these reasons, the global petrochemicals market is expected to rise rapidly.
Key Developments
In order to acquire a competitive edge
in the worldwide industry, major market players are pursuing various growth
methods such as collaboration and partnership. For example, in January 2019,
BASF SE, a German chemical company, and Adani Group, an Indian conglomerate,
teamed up to build a petrochemical manufacturing cluster in Gujarat, India.
In order to improve their market
position, key competitors in the market are focusing on various methods such as
partnerships and agreements. For example, in May 2019, GAIL Limited, a natural
gas processing and distribution firm, agreed to deliver natural gas to India's
power and transportation sectors under an arrangement with ExxonMobil, a
US-based oil and natural gas company.
In order to grow their product
portfolio and improve their market position, major industry players are
employing various techniques such as capacity expansion. For example, in
January 2019, Shell Chemical LP (Shell) began production of the fourth alpha
olefins unit at its chemicals manufacturing facility in Louisiana, United
States.
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