In recent years, the petrochemical industry has experienced a technological renaissance, shaking up global supply dynamics. Fast evolving trends in the petrochemical sector are promoting the industry’s adoption of cost effective, non-oil feedstocks such as natural gas liquids (NGLs) and gradually, coal. The Middle East and US are now established petrochemical powers, with comparatively favourable cost positions to Asian Pacific producers.
In addition, China’s ascendance as a petrochemicals producing and consuming powerhouse has amplified intra-regional competition in Asia Pacific. To economically compete in this evolving industry, North Asian and Association of Southeast Asian Nations (ASEAN) petrochemical producers will have to adopt operationally sustainable and innovative strategies.