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Steam Cracking and the Impact of Shale NGLs on Supplies of Ethylene Co-Products through 2018

Despite the steady demand for benzene and other components, pygas production has recently been constrained by the shale boom increasing supply of NGLs in the US and the economics of cracking light feeds versus naphtha to make ethylene and its co-products. Olefins units have moved to lighter feed slates in US flexible crackers and other regions are investing capital to convert liquid cracker capacity to NGLs.

In Europe, companies are reacting to the threat of low cost ethylene production in the US by adapting their own feedstock strategies. Investments will allow import of ethane from the US for cracking in coastal locations. The proportion of propane and butane in the cracking slate is rising rapidly.

Asian companies are taking measures to maintain competitivenes; Reliance has announced plans to import ethane from the US and will reduce cracking of other LPG feedstocks and naphtha. Japanese and Korean producers are cracking increasing quantities of LPG.

Ethylene vs Co-Products Output

In an effort to quantify these impacts, Argus DeWitt has developed a detailed analysis of ethylene co-product markets out to 2018 to determine availability and impact in the different regions. In the three part study, we define the reasons for the current supply and demand situation and identify the projected trends for medium term supplies.

  • Module I - Ethylene to Pygas – January 2015
  • Module II - Ethylene to Propylene – April 2015
  • Module III - Ethylene to Butadiene – April 2015

Key Benefits

Buyers and sellers of pygas, benzene, propylene and butadiene can benefit from a better understanding of product availability globally.

  • Buyers – Mitigate risk by reshaping procurement strategies
  • Sellers – Maximize profit ratios by adjusting sourcing strategies
  • Traders – Strategically connect buyers and sellers according to under and oversupply in the market
  • Technology providers – Identify new business models from companies who seek to leverage operating flexibility through diversification of feedstocks
  • Strategy and Planning Departments – Determine profitability or opportunities by forecasting supply and demand patterns

Key Features

  • Co-Product Balances – Current and future (out to 2018) annual outlooks, per every country having ethylene plants help you understand how the trade flows of the products are changing
  • Pygas Buyers and Sellers directory – Contact information of participants in the commercialization and trading of pygas
  • Olefins Model – Excel model with all ethylene production by country and their estimated co-product yields based on feedslate mix and cracking severity
    • Ability to run scenarios in-house
    • Forecast of feedstock use out to 2018

Download the brochure featuring the table of contents
 Click here for more information on the study
 Learn more about Argus DeWitt Petrochemical Services

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Argus Consulting Services offer tailor-made research to clients seeking exclusive data, analysis and insight on domestic and international energy, metal, petrochemical and fertilizer markets.

 Contact us for more information about our consulting services