Chemical and Power Industry Trends

Demand for Methanol Climbing in Asia-Pacific

The increasing usage of methanol as an alternative fuel in automobiles, to preserve the environment, and in the production of petrochemicals, such as dimethyl terephthalate (DMT), dimethyl ether (DME), formaldehyde, olefins, biodiesel, acetic acid, and solvents, will drive the global methanol market growth during the forecast period (2021–2030).

However, the outbreak of the COVID-19 pandemic has led to a decline in the operations of the methanol market. Government-imposed lockdowns, to contain the spread of the coronavirus, had a negative impact on the automotive, chemical, and construction sectors. As these industries are the major consumers of methanol, their slowdown led to a tremendous decline in the demand for methanol. Moreover, border closures in 2020 disrupted the supply chain, which further decreased the consumption of the chemical.

The natural gas category, within the feedstock segment, will demonstrate the fastest growth in the methanol market during 2021–2030. As compared to other feedstocks, methanol production from natural gas is much easier and environment-friendly. Additionally, the production process is a thermodynamic and kinetic reaction that occurs at a low temperature and pressure.

The Asia-Pacific methanol market will register the fastest growth in the coming years. This will be due to the expanding chemical and construction industries, which employ a large quantity of methanol. Moreover, the rising usage of methanol as biofuel in the automobile industry will boost the market growth in the region.

Key players in the global methanol market, such as Methanex Corporation, OCI N.V., QAFAC, BASF SE, OQ SAOC, LyondellBasell Acetyls LLC, Celanese Corporation, Mitsubishi Gas Chemical Company Inc., SABIC, and Petroliam Nasional Berhad (PETRONAS), are focusing on expanding their facilities to boost their production capacity.

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