United States: The chemical company ExxonMobil is investing in China to increase the chemical production capacity in the Guangdong Province. This project is expected to bring solution to the growing demand for chemical in China. ExxonMobil signed a collaborative framework agreement with the People’s Government of Guangdong Provincial to enhance the production capacity of the region. The new facility would help meet estimated demand growth for chemical products in China. This is expected to have a positive impact on the Chinese chemical market.
The multibillion-dollar venture, which is still a subject of final investment decision, would comprise of 1.2 million-tons-per-year ethylene flexible feed steam cracker, two performance lines of polyethylene and two segregated performance polypropylene lines. The decision to proceed with the project by ExxonMobil will be based on a number of aspects, including permits and project competitiveness receipt. The Startup is scheduled for the year 2023.
The new complex would be depending on technologies of advanced proprietary in direct crude steam cracking and manufacturing of performance polymers. It would support advancement toward national petrochemical development priorities of China, which consist of self-sufficiency, sources of diversified feedstock, rebalancing fuels versus chemicals and progressing new competitive technology. The framework agreement also confirms support of Guangdong Province in developing the Huizhou LNG receiving terminal, in which ExxonMobil proposes to participate, comprising of supply of LNG.
The company is also assessing other manufacturing projects regarding the Chemical industry in Asia to help meet anticipated demand growth in the region. ExxonMobil expects to grow manufacturing capacity of chemicals in North America and Asia Pacific by about 40 percent. The growth will be accomplished in part by addition of 13 new facilities, comprising of two world-class steam crackers in the United States which are part of the company’s ‘Growing the Gulf’ initiative. These investments would permit the company to meet the growing demand in Asia and other developing markets.
According to BlueWeave Consulting Research the agreement will accelerate chemical market growth in China and Asia Pacific as the demand for chemical is increasing in various industrial verticals such personal care, pharmaceutical, paints & coatings, food and beverage, etc. Such strategic initiative exhibit that over the years several market players will expand their production capacities in developing countries such as China, India, South Korea, Indonesia, etc. to gain competitive advantage, accelerating overall market for chemical market over the forecast period by 2024. Asia Pacific is majorly lead by China, India, Japan have been witnessing exponential growth in recent years and is likely to witnesses tremendous growth in future owing to increasing consumer desire for self-improvement and modernization in the region.