Industry News

MOL Group Plans to Expand Petrochemical Business

The Hungarian oil & gas company announces plans to invest USD1.9 billion in the development of petrochemical business over the next five years

Hungary: MOL Group, a Hungary based oil and gas giant, has planned to expand its petrochemicals business. The company has revealed its intentions to invest USD1.9 billion for improving yield of propylene as well as propylene derivatives for the next five years until 2021. The initial phase of investment in the petrochemical business will help the company to contribute around USD250-300 million to the company’s EBITDA annually. The company is also expected to invest over USD500 million in stem crackers in Hungary and Slovakia for diversification of its propylene value chain. The company also has plans to invest in polyols, a propylene oxide based product which is widely used in automotive, packaging and furniture manufacturing. The company also has plans to enhance their petrochemical plant’s feedstock to cater to the increasing demand for such products as jet fuels, lubricants & base oils.

TechSci Research depicts that the company’s plans for strategic investment will help them to diversity their business. The company also have plans to come up with new products which is expected to further enhance the company’s product portfolio. Additionally, the company also has plans to become an integrated supplier in Central Eastern Europe which would further help them increase their presence in Europe. 

 According to the recently published report by TechSci Research, Global Propylene Market By Application, By Region, Competition Forecast and Opportunities, 2011 - 2025’’, global propylene market is forecast to grow at a CAGR of around 6% during 2016-2025, on account of increasing industrialization and commercialization, and growing emphasis on development of fuel-efficient cars by government. Global automobile production stood at 79.88 million in 2011 and reached 90.78 million by 2015. Government associations across the world have laid down strict regulations regarding greenhouse gases emissions from vehicles in order to control pollution. Additionally, increasing disposable income levels of people in BRIC nations is propelling growth in global propylene market. Some of the major propylene manufacturers includes Sinopec, CNPC, ExxonMobil, LyondellBasell and Royal Dutch Shell.

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