CREDIT: Bloomberg via Getty Images.

China is likely to register the highest ethylene oxide capacity additions globally by 2028, contributing about 75% of the total capacity additions from upcoming planned and announced projects, according to GlobalData.

GlobalData’s latest report, “Ethylene Oxide Industry Capacity and Capital Expenditure Forecasts with Details of Active and Planned Plants to 2028,” reveals that China is likely to witness a total ethylene oxide capacity additions of 5.43 million tonnes per annum (mtpa) during 2024-28 from eleven planned and two announced projects.

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Nivedita Roy, oil and gas analyst, GlobalData, said: “Ethylene oxide is one of the major petrochemicals, mainly used as a precursor to numerous chemical products and derivatives.

The growing demand for ethylene oxide in China’s healthcare and textile sectors is driving the need for capacity expansions in the country.”

In China, the highest capacity addition is expected from the Shandong Yulong Petrochemical Longkou Ethylene Oxide Plant 1 with a capacity of 0.73mtpa.

The plant is anticipated to commence ethylene oxide production in 2024 in the state of Shandong.

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The second highest capacity addition in the country is from BASF Zhanjiang Ethylene Oxide Plant with 0.66mtpa. The plant is currently under construction and is anticipated to begin operations by 2025.

BASF Corp has 100% equity as well as the proposed operator of the plant.

Tangshan Xu Yang Petrochemical Tangshan Ethylene Oxide Plant follows next, and is expected to commence operations in 2027 with an annual production capacity of 0.65mtpa.