European propylene: walking the tightrope of supply vs demand

Wood Mackenzie is forecasting a structural net loss of propylene capacity in Europe via the rationalisation of European steam crackers through the 2020 decade. The closure threat risk primarily arises from global and European pressure on the ethylene and derivatives chains. In parallel, INEOS announced earlier in the year that it is looking to re-phase the propylene and ethylene components of Project One, it’s major European olefins investment in Antwerp, Belgium. Borealis is also currently constructing a PDH plant in Antwerp, Belgium. This insight will analyse the overall changes in European propylene capacity via new investments and forecasted rationalisation of capacity. We will further define expectations for propylene production by supply route and contrast this with the expectation for consumption of propylene and the resulting propylene trade position for the region.