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China to spearhead global butadiene capacity additions through 2028

China is likely to register the highest butadiene capacity additions globally by 2028, contributing about 41% of the total capacity additions from 15 upcoming projects, says GlobalData, a leading data and analytics company.

GlobalData’s latest report, Butadiene Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2028, shows China is likely to witness butadiene capacity additions of 2.67 million tonnes per annum (mtpa) during 2024-28 from 12 planned and three announced projects.

Nivedita Roy, Oil and Gas Analyst at GlobalData, Comments: “Butadiene is a raw material for synthetic rubber, which finds applications in automotive, construction, and rubber goods. The rising demand for butadiene from these sectors, and export opportunities are driving capacity additions in China.”

In China, major capacity additions are from the planned project, CNOOC and Shell Petrochemicals Company Huizhou Butadiene Plant 3, with a capacity of 0.31mtpa. CNOOC and Shell Petrochemicals Co Ltd has a 100% stake in the plant and is also the operator of the project. Located in the state of Guangdong, it is expected to commence production in 2026.

The Exxon Mobil Corporation Huizhou Butadiene Plant represents another significant addition to China’s butadiene production capacity. With a capacity of 0.27mtpa, the facility is anticipated to commence operations in 2025. Exxon Mobil (Huizhou) Chemical Co Ltd, holding full equity, will also serve as the operator of the plant situated in Guangdong.

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