India will be second biggest contributor to upcoming petrochemical project starts in Asia through 2027

India is set to be the second biggest contributor to the total upcoming petrochemical project starts in Asia, as the country is likely to see the start of operations of 279 petrochemical projects from 2023 to 2027, says GlobalData, a leading data and analytics company. 

GlobalData’s latest report, “Petrochemicals New Build and Expansion Projects Analysis by Type, Development Stage, Key Countries, Region and Forecasts, 2023-2027”, reveals that India is likely to account for over one-third of the petrochemical project starts in Asia by 2027. Out of the 279 projects that are expected to commence operations in the country, polypropylene plants lead with 24, followed by propylene at 18.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, comments: “India’s petrochemical consumption is continuously expanding due to economic growth, population increase, and strong demand from sectors such as housing, construction, and automobiles. This rising petrochemical consumption is in turn mainly driving petrochemical project additions in the country.”

Polypropylene projects would constitute around 9% of all petrochemical project starts in India during the period 2023 to 2027. Among upcoming polypropylene projects, Reliance Industries Jamnagar Polypropylene Plant 3 leads with a production capacity of 5.2 million tonnes per annum (mtpa) and is expected to commence operations by 2026.

Bhargavi concludes: “Among propylene projects, which are expected to come online from 2023 to 2027, Haldia Petrochemicals Kakinada Propylene Plant leads with a production capacity of 1.6 mtpa. The project is expected to start operations in 2028.”