China is poised to account for 75% of global ethylene oxide capacity additions by 2028, according to GlobalData, a leading data and analytics firm. The country is expected to add 5.43 million tonnes per annum (mtpa) of ethylene oxide capacity through eleven planned and two announced projects between 2024 and 2028.
Driving Forces Behind Expansion
Nivedita Roy, Oil and Gas Analyst at GlobalData, highlighted the critical role of ethylene oxide in various industries. “Ethylene oxide plays a key role as a petrochemical used to produce numerous chemical products and derivatives. Growing demand from China’s healthcare and textile sectors is fueling capacity expansion,” she explained.
Key Projects Leading the Growth
China’s largest capacity addition is expected to come from the Shandong Yulong Petrochemical Longkou Ethylene Oxide Plant 1. With a capacity of 0.73 mtpa, this plant is set to begin production in 2024 in Shandong province.
As reported by globaldata.com, the second-largest contribution will come from the BASF Zhanjiang Ethylene Oxide Plant, which is currently under construction. This facility, with a capacity of 0.66 mtpa, is expected to start operations by 2025. BASF Corp owns 100% equity and will operate the plant.
Following these projects is the Tangshan Xu Yang Petrochemical Tangshan Ethylene Oxide Plant, which will add 0.65 mtpa in 2027.
China’s Strategic Role in Ethylene Oxide Production
With its significant capacity expansions, China is cementing its position as a global leader in ethylene oxide production. The surge in demand for this essential petrochemical underscores the country’s growing industrial needs and its focus on meeting rising domestic and international market demands.
