Market Trends of Asia-Pacific Activated Alumina Industry
Growing Demand from the Oil and Gas Sector
- Activated alumina is used in the oil and gas business to remove water from natural gas streams and as an adsorbent to recover sulfur from refineries. An increasing number of refinery projects and government support are anticipated to largely influence this segment's demand for activated alumina.
- According to the International Energy Agency, global oil demand is expected to reach 104.1 mb/d (million barrels per day) by 2026, with China and India accounting for about half of the growth through 2026, thus supporting market growth in the coming years.
- Also, China National Offshore Oil Corporation's (CNOOC) oil and gas production is expected to rise by more than 6% each year during 2022-2024, playing a critical role in China's energy supply security.
- Under the expectation of the growth in demand for oil refining in the coming years, China Petroleum & Chemical Corp, also known as Sinopec, announced plans in 2022 to invest CNY 198 billion (USD 31.10 billion) in the industry. The company will invest CNY 81.5 billion (USD 11.38 billion) in upstream exploitation, crude oil bases in Tahe and Shunbei fields, and natural gas fields in Sichuan province and the Inner Mongolia region.
- The Indian government has announced various plans to meet the growing need for oil and gas. It has allowed 100% foreign direct investment (FDI) in many sector segments, including natural gas, petroleum products, and refineries.
- As per the announcement by India's Petroleum Minister in 2022, the country is aiming to more than double the area under exploration and production of oil and gas to 0.5 million square kilometers by 2025 and to 1 million square kilometers by 2030 with a focus of raising domestic output and reduce reliance on imported fuel.
- Owing to all the factors mentioned above, the market for Activated Alumina in the Asia-Pacific region is expected to grow significantly over the forecast period.
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China to Dominate the Market for Activated Alumina in Asia-Pacific
- China has increased its focus and efforts towards combating the high levels of environmental pollution in the country; the result of it has accelerated economic growth and also led to an increase in the demand for water treatment chemicals and materials where activated alumina is used as a desiccant and a filter for fluoride and arsenic.
- In June 2022, China Everbright Water, an environmental protection company focusing on water environment management, secured the expansion and upgrading project of the Zhangdian East Chemical Industry Park Industrial Wastewater Treatment in Zibo City, Shandong Province. After upgrading and expansion, Zhangdian Project is anticipated to have a total designed daily industrial wastewater treatment capacity of 10,000 m3. The scheduled completion date of the plant has not been disclosed yet.
- Moreover, the government of China has also announced the construction of 20 million m3/d of additional wastewater treatment capacity over the next 5 years.
- China is a hub for chemical processing, accounting for a major share of the chemicals produced globally. With the rising demand for various chemicals and stringent environmental regulations, this sector's demand for activated alumina is projected to increase during the forecast period.
- Various investments have been witnessed in the country in recent years, leading to a substantial increase in the demand for activated alumina as a catalyst and adsorbent from the chemical industry. For instance, in June 2023, BASE SE announced the development of a new polyethylene facility in Zhanjiang, China, with an annual capacity of 500,000 metric tons. The facility is scheduled for completion in 2025.
- Owing to such trends and developments, the market for activated alumina in the Asia-Pacific region is expected to dominate China over the forecast period.
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