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The global ethylene market size is expected to reach USD 245,005 million by 2027. The rising use of lightweight plastic material in automotive and construction industries will promote the growth of the market, mentioned in a report, titled “Ethylene Market Size, Share & COVID-19 Impact Analysis, By Application (High-Density Polyethylene, Low-Density Polyethylene, Ethylene Oxide, Ethyl Benzene, and Others), and Regional Forecast, 2020-2027.” The market size stood at USD 166,520 million in 2019 and is expected to exhibit a CAGR of 5.6% between 2020 and 2027.
The partnership between Shell and CNOOC to Amplify Growth
China National Offshore Oil Corp, CNOOC Group, one of the largest national oil companies in China announced that it has signed a partnership agreement with Shell PLC, oil and gas multinational company headquartered in the Netherlands to expand its plant in Huizhou City, China. As per the announcement by CNOOC and Shell Petrochemicals Co. Ltd, Phase 3 This project is expected to add 1.5 million tonnes annually of capacity. The capacity expansion will include products like ethylene, propylene, butadiene, and ethylene oxide/ glycol, among others. The joint venture includes a transaction worth $5.6 billion. Moreover, the joint venture companies also signed a framework agreement underpinning the project, thus boosting the chemicals business and investments. CSPC functions with an ethylene production capacity of 2.2 million tons per year. Besides, CNOOC Subsidiary CNOOC Petrochemicals Investment Ltd. holds a 50% stake in the joint venture while Shell unit Shell Nanhai BV owns the remaining 50% interest.
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Emergence of Natural Substitutes to Market Growth
The depleting raw material such as fossil fuel coupled with fluctuating crude oil prices can retard the growth of the market. The introduction of substitutes such as bio-ethanol from natural sources such as starch and sugar will further restrict the adoption of the market. The growing adoption of these bio-based substitutes owing to the government support for eco-friendly materials will diminish the growth of the market. The increasing technological advancement in the production of substitutes will subsequently restrict the growth of the market. Moreover, the disrupted supply chain due to coronavirus will thwart the expansion of the market.
Key Strategic Initiatives Implemented by Companies to Uplift Market
Key players operating in the market, include Reliance Industries Limited, China Petroleum & Chemical, LyondellBasell Industries Holdings, Exxon Mobil Corporation, Shell International, SABIC, and others. The key players are adopting strategies such as product innovation, merger, acquisition, collaboration, and expansion plans to strengthen their stance in the global market. For instance, In September 2018, China's Sinopec started the production of ethylene at the Zhanjiang refinery. The company will produce 8,000 kilotons of ethylene per year at this factory.
The Report Lists the Main Companies in this Market:
Further Report Findings:
The Market is Segmented into:
Value (USD Million); Volume (Kiloton)
Application; and Geography