Dimethyl Ether Market Trends

Growth Drivers

• Shifting focus on utilizing biomass to produce DME: The current research based on oil palm empty fruit bunch (OPEFB) for generating dimethyl ether is still in its primitive phase. Indonesia is emphasizing mitigating the dependence on LPG imports by assessing ex-factory   DME costs, transportation expenditure, and depot fees, particularly in the Kalimantan area plant. Its daily capacity is 994 tons OPEFP, which can lead to a corresponding production of 92 tons DME as of January 2023. From a financial perspective, the internal rate of return (IRR), net present value (NPV), and payback period (PP) are 17%, USD 93.1 million, and 10 years, considering 30 years of plant life and an investment of USD 185.4 million. Roughly, 57% of the DME-LPG mix distributed can suffice Kalimantan’s yearly requirements, while annual import budget savings are USD 5.81 million.
• Stable propane costs and subsequent rise in LPG supply: The U.S. propane wholesale prices have remained fairly stable, with slight variances since 2023 and to date. As of 3^rd February 2025, the weekly and annual pricing analysis of wholesale propane suggests that the dollars per gallon was 1.206, signifying a 0.040 drop from a week ago and 0.101 surge from the previous year. Several governments are subsidizing LPG to meet the supply-demand gap and aiding 400 million marginalized households. In Ecuador, LPG refill costs for residential purposes are discounted point of sale (∼$0.67/kg, 90% market cost). Similarly, in India subsidies (∼$0.33/kg, 45% market cost) are deposited into customers’ bank accounts.

Challenge

• Impact of environment on O&G production:  Since the shortfall of investment in the oil and gas industry has been growing, clean energy sources have been gaining traction. Moreover, increasing demand for electric vehicles is another factor that is estimated to hamper the market growth over the forecast period.