Large-scale investment plans are progressing in Indonesia’s petrochemical industry. PT Chandra Asri Petrochemical Tbk and Malaysia’s Lotte Chemical Titan Holding Sdn Bhd each plan to construct naphtha cracking furnaces with an annual ethylene production capacity of 1 million tons in Banten Province, West Java. Including derivatives equipment, total investment for each facility is estimated to...
ethylene
Plans for New LPG Cracking Furnaces Multiply in China, South Korea – Part 2
Falling crude oil and naphtha prices since 2014 have raised the profitability of petrochemical products such as ethylene, thus increasing momentum for the construction of new facilities in Asia. Liquefied petroleum gas (LPG) cracking furnaces are a part of this trend as manufacturers make effective use of the cost advantage of LPG in the wake...
METI Estimates Global Supply and Demand Trends for Petrochemical Products
Japan’s Ministry of Economy, Trade and Industry (METI) has compiled predictions for petrochemical product supply and demand until 2021. According to these predictions, global ethylene production will exceed 200 million tons in 2021 for an increase of 45.4 million tons compared to 2015. From the fall of 2017 onward, the addition of more shale gas-derived...
Asia Could See Large Influx of US Shale-Derived Ethylene
U.S. shale-derived ethylene is expected to increase in the Asian market, with a number of companies planning the construction of ethylene export terminals. For such projects, 10,000-ton class tanks require billions of yen (1 billion yen = $87.87 million) in investment, making the plans appear to be targeted at recruiting long-term customers primarily from Asian...
Japan’s Petrochemical Industry Sees Revitalization With Ethylene Facility Upgrades
A noticeable trend is taking place in Japan with a spurt in capital investment to upgrade petrochemical facilities. Asahi Kasei Mitsubishi Chemical Ethylene Corp. will revamp its facilities at the Mizushima Plant this year to increase ethylene production. Tosoh Corp. (TYO:4042), meanwhile, has begun looking into boosting the efficiency of the company’s ethylene plant in...
Sinopec to Buy out BP’s Share of Petchem JV
BP PLC has announced that the company will withdraw from its petrochemical JV with China Petroleum & Chemical Corp., commonly referred to as Sinopec. BP has agreed to sell its total 50-percent share in the JV, Shanghai Secco Petrochemical Co. Ltd., to Sinopec subsidiary Gaoqiao Petrochemical Co. Ltd. for a total amount of $1.68 billion....
Mitsui Chemicals to Strengthen Petrochemical Business With 100 Billion Yen Investment
Mitsui Chemicals Inc. (TYO:4183) is planning to allocate 100 billion yen ($905.3 million) for capital investment in the petrochemical sector by fiscal 2025. For its ethylene facilities, the company will install storage tanks for raw material diversification to improve logistics. In the polyolefin realm, the company is eying the possibility of constructing factories in Japan...
Westlake, Lotte Chemical to Complete US Ethane Cracker by End of 2018
Westlake Chemical Corp. revealed at its recent business results briefing that an ethane cracker it is building jointly with Korea’s Lotte Chemical Corp. in Lake Charles, Louisiana, looks set to be completed by the end of 2018. Westlake said commercial production is slated to begin in the first half of 2019. This ethane cracker will...
Japan’s Naphtha Cracker Capacity Utilization Exceeds 100 Percent in January
With capacity utilization of ethylene-producing naphtha crackers reaching 100.1 percent in Japan last month, it marks the first time since February 2008 that naphtha crackers have operated at more than full capacity. This can be attributed to strong demand, even while domestic production capacity is shrinking. Imports of petrochemicals are decreasing and demand for made-in-Japan...
Japanese Ethylene Production Down 8.8% for 2016, Operating Ratio Remains High
Ethylene production from January to December 2016 suffered a year-on-year drop of 8.8 percent to 6.2793 million tons, according to production records of major petrochemical products that were compiled by the Japan Petrochemical Industry Association (JPCA). Although decreased capacity caused production to fall, the ethylene operating ratio remained above 90 percent for the 37th...
Idemitsu Kosan, Mitsui Chemicals to Increase Propane Ratio in Petrochemical Raw Materials
Idemitsu Kosan Co. Ltd. (TYO:5019) and Mitsui Chemicals Inc. (TYO:4183) will increase the propane processing capacity at Chiba Chemicals Manufacturing LLP. Jointly operated by the two companies, the complex has an ethylene manufacturing facility with a current capacity of 370,000 tons per year. Periodic maintenance will be carried out at the complex in the autumn...
Naphtha Cracker Margins Contract in Southeast Asia
Naphtha cracker margins are contracting in Southeast Asia. The spread between naphtha and ethylene was just under $600 per ton from late October to the beginning of November, down 20 percent since April. While the margin remains reasonable, there are strong expectations that there will be oversupply of olefin in Southeast Asia throughout next year....
Rabigh Phase 2 Project Completion Pushed Back to May 2017
An expected delay in the completion of a derivatives plant is set to push back the timeline on the Phase 2 expansion project of Rabigh Refining & Petrochemical Co., a joint venture for oil refinery and petrochemical business in Saudi Arabia between Sumitomo Chemical Co. Ltd. (TYO:4005) and Saudi Aramco. The plant was initially set...
Commentary: Hasty Shutdown of Naptha Crackers in Japan Results in Surging Imports
Imports of petrochemical products are suddenly surging. Import volume for ethylene from January to August 2016 jumped by 17 times year-on-year to about 80,000 tons. Polyolefin also increased in import volume, rising by around 20 percent from the same period the year prior. Imports have filled a shortage of domestic supply, as Japan’s petrochemical companies,...
Commentary: JX and TonenGeneral Merger to Focus on Consolidation of Kawasaki Ethylene Plants
With JX Holdings Inc. (TYO:5020) and TonenGeneral Sekiyu KK (TYO:5012) merging in April 2017 to form JXTG Holdings, the near-term focus for the JXTG Holdings chemicals business will be the consolidation of the two companies’ respective ethylene centers located in the Kawasaki area of Kanagawa Prefecture. The chemical businesses of the two companies will be...
Ethylene Production for June Down 10.7% From the Previous Year
According to a report released by the Ministry of Economy, Trade and Industry (METI), ethylene production for June 2016 was down to 499,400 tons, 10.7 percent less than it was for the same month the previous year. From 2015, Sumitomo Chemical Co. Ltd (TYO:4005) and Asahi Kasei Corp. (TYO:3407) have seen decreased production after permanently shutting down...
Asahi Kasei and Mitsubishi Chemical Aim to Restore Mizushima Ethylene Operations This Month
Repairs are being undertaken on an ethylene facility jointly operated by Asahi Kasei Corp. (TYO:3407) and Mitsubishi Chemical Corp. in the Mizushima industrial zone of Kurashiki City, Okayama Prefecture. Operations at the facility were suspended on July 27 due to malfunction, stemming from an abnormality that was detected in the heat exchanger, a piece of...
Ethylene Production Falls 10.3% for June, Down 7% for First Half of 2016
Ethylene production for June 2016 suffered a year-on-year drop of 10.3 percent, to 446,200 tons, according to production records of major petrochemical products that were compiled by the Japan Petrochemical Industry Association (JPIA). The drop in production has been attributed to regular maintenance of two plants and to the permanent suspension of the naphtha cracker...
