In the upcoming four years, China is set to witness a substantial increase in methanol downstream capacity, totaling 18.584 million tonnes/year. Notably, glacial acetic acid and MTO (Methanol-to-Olefins) account for a significant 69.95% of the newly-added capacities, according to data compiled by OilChem.
The expansion of glacial acetic acid capacity is propelled by robust profits in recent years, while MTO capacity growth is driven by the construction of integrated coal chemical plants, as highlighted by OilChem.
Geographically, the concentration of new methanol downstream capacities will be most pronounced in Northwest China and East China. Northwest China, in proximity to feedstock-producing areas, benefits from cost advantages and convenient transportation of coal and methanol. On the other hand, East China, close to downstream users, enjoys the advantages of convenient export.
In terms of commissioning, based on OilChem's project progress analysis, a substantial 41.13% of the new capacities are expected to come online in 2024, particularly in the latter half of the year. This poses both opportunities and challenges for the development of the methanol industry in China.
Source: OilChem
Source: OilChem
Written by Ariel Guo, gq@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com