Ethylene & Propylene; Used As Raw Materials in Nearly Every Petrochemical Supply Chain
Ethylene & propylene are used as raw materials to manufacture a large amount of derivatives such as cumene, polypropylene, polyethylene, ethylene dichloride, and ethyl benzene, among others. These derivatives are often used by various end-use industries, such as paints, coatings, packaging, etc. Ethylene is used also used in the chemical industry, as well as in the agriculture industry for ripening of fruits. Propylene is used to produce polypropylene plastics for injection molding and fibers and to manufacture cumene (used in phenol production).
According to Coherent Market Insights the global ethylene & propylene market was valued at US$ 325,264.5 million in 2018, and is expected to register a CAGR of 5.5 % in terms of revenue over the forecast period (2019–2027), to reach US$ 520,251.9 million by 2027.
Propylene, also known as propene, is also used to manufacture oxo alcohols, propylene oxide, acrylic acid, and isopropanol. The main uses of refinery propene are in liquefied petroleum gas for thermal use or as an octane-enhancing component in motor gasoline. Propylene can also be used to produce acrylonitrile, polypropylene resin, acrylic acid, isopropyl alcohol, propylene oxide, and acetone through hydration, alkylation, oxidation, polymerization, and the addition of halogen. Common name of propylene is propene or methyl ethylene.
Ethylene & propylene are used as raw materials in nearly every petrochemical supply chain, most of which end up as manufactured goods that are used in homes. Moreover, the realization of the industrial utility of ethylene & propylene has added a new dimension to thermal cracking of petrochemicals, the two of which are byproducts. A large amount of ethylene is used in the manufacture of ethyl benzene, ethylene dichloride, and ethylene oxide. While large amount of propylene is used to manufacture derivatives for industrial purposes.
Thus, there is an increasing demand for ethylene & propylene from various end-use industries across the globe. This, in turn, has led companies to invest in expanding the capacity of ethylene & propylene production plants. For example, in January 2021, OMV Group planned to invest around € 40 million to increase ethylene & propylene production capacities at subsidiary OMV Deutschland GMBH’s 3.8-million tons/year Burghausen refinery in Bavaria, Germany.
