AM-12-10 Where to From Here? Perspectives on the Global Petrochemicals Industry

Description:

Petrochemicals have been an integral part of the downstream value chain for many years, with the industry accounting for an estimated 8–12% of total refinery output. However, petrochemicals have attracted even greater attention among the global downstream players within the past year. Favorable shale gas-driven light feedstock economics for many ethylene producers in the U.S. have resulted in increased petrochemical exports to the rest of the world at the expense of higher cost naphtha crackers. This, in turn, has resulted in a ‘land rush’ of new announcements to build new ethylene capacity in the U.S., and even new grassroots plants. Obviously, a number of industry players are giving very serious consideration to betting that the light–heavy ethylene feedstock differential will last long enough to generate acceptable returns on these significant new investments.