India PTA, MEG supply deficit to sharply grow in a decade
Quintella Koh
10-Nov-2011
By Quintella Koh
SINGAPORE (ICIS)–India will have a huge supply deficit
of purified terephthalic acid (PTA) and monoethylene glycol
(MEG) in the long-term, with scant investments being poured
into these sectors, set against the country’s rapidly growing
consumption, an industry official said late on
Wednesday.
The country’s PTA deficit will increase fivefold to
approximately 1.67m tonnes by 2022 from 2009, while its MEG
deficit will nearly triple to around 1.15m tonnes over the
same period, said Mathew George, chief manager of Indian
Oil’s petrochemicals export division, in an interview with
ICIS.
In 2009, the PTA deficit was estimated at 330,000 tonnes and
the MEG deficit pegged at 387,000 tonnes.
“There are significant opportunities for investment in the
PTA and MEG industries as India gradually turns
middle-class,” George said.
In 2009, India’s total PTA supply was at around 2.8m tonnes,
while demand was 11% higher at 3.1m tonnes.
George said that by 2022, the country’s total PTA supply will
only be at 3.6m tonnes in the absence of any new projects
being announced, but the “country’s PTA demand will have
ballooned to around 5.3m tonnes”.
For MEG, India’s domestic production totalled 800,000 tonnes,
while demand was at around 1.2m tonnes.
“By 2022, India’s total MEG supply will only reach 1.1m
tonnes, while its demand will have increased to a little over
2m tonnes,” George said.
This implies that India will have room to accommodate at
least two more world-scale fibre intermediate plants to
provide for the country’s needs, he said.
India’s growing appetite for fibre intermediates is fuelled
by the country’s consumption boom, which, in turn, is driven
by rising income levels, George said.
“India only had 8m households in the upper middle class range
with a monthly income of $1,500 (€1,110) to $3,000 from
1995-1996. This number will increase to 29m households in
2014-2015,” he said.
($1 = €0.74)
For more on PTA and MEG, visit ICIS chemical intelligence
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