The petrochemical sector faces a prolonged downturn and a shift toward sustainability

The global petrochemical industry is bracing for a significant transformation, as a deep and extended downturn is expected to close many outdated plants, leading to more sustainable operations powered by low-carbon solutions and recycling technologies.

Alexander H. Tullo reports for Chemical & Engineering News.


In short:

  • Overcapacity and rising production costs are pushing many older petrochemical plants, especially in Europe, to shut down by the end of the decade.
  • Companies are investing in low-carbon hydrogen and recycled plastics technologies to meet environmental goals, with several projects launching by 2028.
  • China's economic slowdown is reducing demand growth, further exacerbating the petrochemical market’s recovery challenges.

Key quote:

“We are in a trough; it’s wide, relatively deep, and the recovery is in 2028 onward.”

— Dewey Johnson, senior vice president at CMA

Why this matters:

The petrochemical industry, historically reliant on fossil fuels, is undergoing a major shift. Decarbonization and recycling innovations will help reduce its environmental impact, but the process could mean job losses and economic shifts in regions dependent on older plants.

Related: WATCH: Enduring the “endless” expansion of the nation’s petrochemical corridor

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