Petchem LPG Demand Bounces Back

Global petchem use of LPG will expand by 140,000 b/d this year, according to ESAI Energy's newly published Global NGL Outlook. Last year, scarcity and high prices caused petchem demand to contract by 50,000 b/d and encouraged steam crackers to up their naphtha intake. This year, ESAI energy has been forecasting an increase in LPG supply that will soften LPG prices relative to naphtha and encourage steam crackers to turn back to LPG. The latest data bear out this prediction. Consequently, robust petchem demand will help steer the market toward balance, averting a more bearish tilt into surplus.

The report details that this turnaround in petchem LPG demand is already underway. About 30 percent of global LPG use is used for petrochemical purposes, where demand is volatile due to feedstock-switching. North Asia, comprised of Japan, South Korea and Taiwan, is the growth market for the petchem sector. In the last quarter of 2017, petchem demand in Taiwan and South Korea plunged, dragging down overall North Asian petchem demand to just 170,000 b/d, 70,000 b/d less compared to a year earlier. However, monthly data provide evidence that petchem demand already recovered. Given ESAI Energy's outlook for favorable LPG pricing, North Asia will drive a 140,000 b/d increase in global petchem demand for LPG this year, which will contribute to overall LPG consumption growth of 340,000 b/d.

“Due to existing and anticipated supply growth in 2018, the LPG market has quickly transitioned from scarcity to abundance,” explains Andrew Reed, ESAI Energy's Head of NGLs. “Our analysis shows that there is plenty of discretionary petchem demand out there to balance the market. Therefore, we expect to see a balanced market rather than a glut.”

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

PetchemLPGESAI EnergyNGLNorth AsiaSouth KoreaTaiwan

More items from oilvoice

Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice

Posted 10 months agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice

Posted 1 year agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice

Posted 1 year agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice

Posted 1 year agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice

Posted 1 year agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice