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
Cyprus dreams again
24 May 2017
Developers working offshore the island think they may be about to unlock vast new reserves. Taking them to a depressed market will be much harder
Natural gas still not getting through in Europe
17 May 2017
Coal still beats natural gas in many European markets, notably Germany. This makes no sense, says Wintershall chief executive Mario Mehren
Gazprom's next gas battle
15 May 2017
The Russian giant is ready to defend its market share in Europe and face off the threat of American LNG