The scale of investment in chemical companies is constantly expanding

The chemical company continued to build new factories. From 2005 to 2015, global investment in the chemical industry has nearly tripled and now exceeds US $200 billion.

Most of the new and under construction chemical companies in the world are based on traditional design and construction, but the engineering departments and EPC contractors of chemical companies are about to make significant changes to the engineering process.

Growth creates the need for scale. In the autumn of 2017, the sadara large-scale project completed in Jubail, Saudi Arabia, marks another milestone in the global chemical boom. By investing $20 billion, Saudi Aramco and Dow Chemical have positioned themselves to develop the growing demand for chemicals. According to market research estimates, in the next 20 years, the annual demand growth of chemical products will be between 4% - 4.5%.

In response, chemical companies continue to invest, and to some extent, the scale of investment is also increasing. Saudi Aramco, an oil company, and SABIC, a plastic manufacturer, plan to spend $20 billion on a petrochemical complex in the next few years.

The Saudi industry leader is planning to spend $5bn to build an ethylene propylene plant with French energy company total. ADNOC, the Abu Dhabi state-owned oil company, has announced plans to increase its petrochemical capacity by 300 times to 11.4 million tons by 2025.

However, the launch of the spectacular project is not limited to the Middle East. The shale gas boom in the United States has created a demand for new petrochemical projects. Four new ethane cracking units were completed in 2017. Another four turrets are under construction and are scheduled to start operation in 2019.

The second wave of investment has begun. The feasibility of building five more turrets is being evaluated. The American Chemical Council estimates that the annual capital expenditure of us chemical companies will increase from $40 billion in 2016 to $58.6 billion by 2021. In February this year, the Commission listed 294 current projects with a total value of $179 billion.

Last year, the European chemical industry's capital expenditure on expanding production and building new plants and equipment also increased. According to the estimates released by Cefic, the capital expenditure of the global chemical industry increased more than threefold from 2005 to 2015. Excluding the Middle East, where data are not available, capital expenditures in these chemicals producing countries rose to $210 billion in 2015. In 2017, the capital expenditure of German chemical producers was about $19.8 billion.

The demand for raw materials to support existing and new capacity will have a follow-up effect. The oil and gas industry needs further investment. The International Energy Agency (IEA) estimates that by 2040, petrochemicals will replace the fuel sector as a major driver of global crude oil demand. The chemical industry's daily demand will reach 15.7 million barrels, 47% higher than in 2015.

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