Global methanol capacity is poised to see considerable growth over the next five years, potentially increasing from 164.16mtpa in 2021 to 278.70mtpa in 2026, registering total growth of 70%.
GlobalData’s latest report, ‘Global Methanol Industry Outlook to 2026 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’, states that around 103 planned and announced plants are slated to come online, primarily in Asia, the Middle East and the Former Soviet Union (FSU).
Among the regions, Asia dominates, with the highest number of planned and announced projects at 25. These projects account for a total capacity of 35.54mtpa by 2026. In Asia, China contributes more than 21.58mtpa by 2026. Major capacity additions will be from a planned project, Ningxia Baofeng Energy Group Yinchuan Methanol Plant 3. The country is expected to spend a capital expenditure (capex) of $6.78bn during 2022 to 2026.
The Middle East has 22 planned and announced projects, accounting for about 27.51mtpa of capacity by 2026. Among the Middle Eastern countries, Iran would dominate, with a capacity of 26.81mtpa, by 2026. Major capacity additions will be from a planned project, Mahan Chemical Zagros Petrochemical Eslamabad-e-Gharb Methanol Plant. The country is expected to spend a capex of $6.34bn.
The FSU stands third, with 17 planned and announced projects with capacity of about 24.35mtpa by 2026. In the FSU, Russia dominates, with a capacity of 19.10mtpa. Major capacity additions will be from an announced project, Rushimcom Nenets Autonomous Methanol Plant. The country is expected to spend a total of $10.9bn by 2026.
Tianjin Bohai Chemical Industry Co Ltd, China Petrochemical Corp and Reliance Industries Ltd will be the top three companies globally in terms of planned and announced capacity additions over the upcoming years.