Indian Chemical News (ICN), a credible online portal covering Chemicals, Petrochemicals, and Energy sector, is organizing an E-conference on 'Petrochemicals: Positioning India as a Hub by 2035' on March 15, 2022 from 3:00 - 4:30 PM. The interactive session is supported by Elliott Group. Click here to attend the live session. 

One can register as a delegate for the Petrochemical E-conference by clicking on the link

The speakers for the E-conference are: Bhaskar Jyoti Phukan, Director - Technical & Managing Director, Numaligarh Refinery Ltd.;  Saugata Chaudhuri, Head - Petrochemicals Marketing, Hindustan Petroleum Corporation Ltd.; Tarun Kumar, GM - Petrochemical Marketing, Bharat Petroleum Corporation Ltd.; Chandan Sengupta, Senior Advisor - Marketing & CBT, Haldia Petrochemicals Ltd.; P. V. Balaramakrishna, General Manager – Technology, L&T Hydrocarbon Engineering; Vijayraghavan KS, Head Sales - Global Services, Elliott Group; and Pravin Prashant, Editor, Indian Chemical News.

The market size of the global petrochemical industry is projected to reach US $860.8 billion by 2028 from US $536.1 billion in 2020, witnessing a CAGR of 6.4% between 2021-28. Also, the global petrochemical capacity is predicted to increase from over 2,200 mtpa in 2020 to more than 3,100 mtpa by 2030, registering a total growth of 40%.

Considering the ‘planned and announced’ capacity addition of 245 mtpa, China is expected to account for 29% of the global petrochemical capacity additions (and 51% of Asian capacity additions) by 2030, followed by India at over 158 mtpa or about 20% of global capacity addition and almost 33% of Asian capacity, according to the latest available statistics. Around 1,558 planned and announced projects are slated to come online by 2030, primarily in Asia and the Middle East.

India could look for the requirement of over 15 world-scale petrochemicals assets by 2035 to fulfill the domestic demands alone. Alongwith other anticipated development, India is projected to attract billions of dollars of investments in order to make the country Aatmanirbhar in petrochemicals.

So, what would it take for the Indian petrochemical industry and the stakeholders to successfully ride the petrochemical wave in positioning India as a major global hub in the sector?

In terms of volume, the petrochemical market in India stood at 42.50 mtpa and is estimated to reach 49.62 mtpa by 2025. It will expand at a CAGR of 6.14% between FY 2021 and FY 2025. There is little doubt that India is going to be a major petrochemicals manufacturing center thanks in large to a large population base and fast growing petrochemical consumption in the country. But can India also be a major international petrochemicals hub that can significantly cater to global demands? 

Feedstock sourcing and prices, below par production of intermediates, lagging technological advancement in the area, absence of world class petrochemical assets are some of the challenges. Amidst the ever-evolving undercurrents of change, be it changing demand-supply pattern, shifts in feedstock diversity, new entrants or emerging markets, there exists a massive growth opportunity.

How strategically India is positioned in terms of policy support, efficient business facilitation, incentives and other measures for new and existing players is what will determine what some hail as ‘The Golden Age for India’s petrochemical industry.

Creating conducive environment and policy support for new investment and reinvigorating PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) and, importantly, leading ears to the concerns and suggestions of the industry stakeholders, could be the game changer towards creating an ‘Aatmanirbhar Bharat’ much sooner than later and become a global hub as well for petrochemicals.

Leveraged adequately, the Indian petrochemical sector has the potential to alter India’s manufacturing and industrial landscape across every possible industry, from agriculture, healthcare, textiles, automobiles, FMCG, infrastructure and consumer durables.

The key discussion points are: Understanding the current market dynamics and opportunity; Bottlenecks and challenges in petrochemical sector growth; Supportive policy framework; Adoption of technology, digitization and green and sustainable practices; Availability of feedstock and intermediates; and Overcoming logistics and supply chain issues.