Related Articles
Forward article link
Share PDF with colleagues

Demand for naphtha decreases as gas based chemicals increase

A rapid swing in chemicals feedstock use is set to upturn refinery operations worldwide

Rising shale gas and oil output has transformed the US’ chemicals industry – but with consequences for refiners worldwide. As US low-priced, gas-based chemicals production goes up, the demand for naphtha – a chemicals feedstock in much of the rest of the world – is set to decline elsewhere. At the same time, rising tight or shale oil and gas production in the US is bringing more naphtha to market, turning a once-scarce stream into a substantial surplus. Only eight years ago, the chemicals industry in the US was generally believed to be on its last legs as local feedstock costs were high and rising while facilities in the Middle East profited from heavily subsidised gas. But the US is now one

Also in this section
Storage fundamentals turn
20 October 2017
A shift in most oil markets from contango to backwardation is changing the outlook for the global storage business
Electric charge for EVs in Norway
18 October 2017
The electric vehicle market is expanding rapidly in Europe but a lack of sufficient infrastructure remains a problem. Christina Bu, Secretary General of the Norwegian Electric Vehicle Association explains all
Russia's LNG threat boosts export liberalisation prospects
17 October 2017
Don't expect the market to be freed up anytime soon, but Russia is at least thinking about busting Gazprom's monopoly on pipeline gas supply