APPEC: Regional dynamics, sustainability and new technology to shape petrochemicals future

The interplay between regional dynamics, sustainability, and technological advancements will be crucial in shaping the future of the petrochemicals industry, industry experts said at APPEC 2025 on Sept. 9.

There were significant changes in trade flows over the past five years. Ganesh Gopalakrishnan, general manager of Petrochemicals Trading at TotalEnergies Trading Asia, pointed out that "the global trade flow has dropped almost 35%," particularly in the aromatics sector.

This decline signifies a transformation in production capacities, with Asia emerging as a leader in aromatics production while the US shifts its focus toward glycol and polymers. The increasing export of aromatics-based polymers from Asia indicates a strategic pivot that could reshape global trade patterns, he said during APPEC 2025 in Singapore, hosted by S&P Global Energy.

Bahrin Asmawi, CCO of Petronas Chemicals Group Berhad, emphasized the importance of understanding the actions of major players like China and Japan. This sentiment reflects a growing recognition that regional trends are increasingly interlinked with global market movements. Malaysia, for instance, is ramping up its product offerings in response to these shifts, showcasing the agility required to adapt to changing market conditions.

As companies face pressure to innovate, Asmawi said, "We view sustainability and innovation as powerful tools that can accelerate decarbonization." This perspective underscores the necessity for businesses to integrate sustainable practices into their operations, not only for compliance but also to remain competitive in a rapidly evolving market, he added.

The integration of advanced technologies, including AI and digitization, was seen as a pathway to enhancing efficiency and reducing costs. Sanjiv Vasudeva, executive vice president and chief marketing officer at Haldia Petrochemicals, said, "Technology and innovation are essential for improving carbon footprints," suggesting that companies prioritize these areas to meet both market demands and regulatory expectations.

However, implementation challenges persist, particularly in emerging markets where infrastructure development and regulatory frameworks continue evolving. The uncertainty surrounding government policies in markets like India poses risks for long-term investment planning, despite existing demand fundamentals.

While demand exists in emerging markets, the infrastructure and ecosystem necessary for sustainable growth are still developing, highlighting the need for strategic partnerships and investments to foster an environment conducive to innovation and growth, Vasudeva added.