Asia to account for 89% global phenol capacity additions by 2027, reveals GlobalData

11 Dec, 2023 Asia to account for 89% global phenol capacity additions by 2027, reveals GlobalData

Posted in Oil & Gas

Asia is set to lead the global phenol industry capacity additions with a share of 89% by 2027, by gaining capacities from new-build and expansion projects between 2023 and 2027, according to GlobalData, a leading data and analytics company.

GlobalData's latest report, "Phenol Industry Capacity and Capital Expenditure Forecasts with Details of Active and Planned Plants to 2027," reveals that the total phenol capacity of new-build and expansion projects in Asia is expected to be 2.48 million tonnes per annum (mtpa) by 2027.

Phenol is a starting chemical that is used in manufacturing downstream products such as alkyl phenols, phenolic resins, and Bisphenol A, which find wide application in various end-use sectors such as plastics and pharmaceutics. Rapid industrialization and urbanization in Asia are behind the high market demand of phenol.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: "For the upcoming new build projects, Asia is expected to add a capacity of 2.48 mtpa from seven planned and announced projects, whereas there is no expansion in the region."

Phenol capacity additions in Asia are expected to come mainly from India and China. The major capacity addition in India will be from an announced project, Reliance Industries Jamnagar Phenol Plant, with a capacity of 1 mtpa. It is expected to commence production in 2026.

Nivedita concludes: "In China, the major capacity contribution will be from an announced project, Zhejiang Petrochemical Daishan Phenol Plant 3 with a capacity of 0.40 mtpa. It is expected to come online in 2027."