Olefins &Feedstock Lightening has become a global trend. The success of the shale gas revolution has triggered the migration of olefins feedstock from naphtha to lighter alkane in the US and around the world. According to ASIACHEM, based on the average price of major olefins feedstock and typical projects in China in 2019, the cost of olefins per ton of the 5 types of projects in order from low to high is: ethane cracking, PDH, CTO, naphtha cracking, and MTO. Projects using light hydrocarbon as feedstock have strong cost advantages and can achieve considerable profits.
China is at the center of a storm of olefin feedstock lightening. At present, China has more than 70 light hydrocarbon cracking and PDH projects under construction or planning. In the past year, the XinpuLHCUproject was put into operation, setting a precedent for cracking using imported ethane; Lanzhou PC and PetroChina Tarim’s ethylene projects started construction, which use domestic ethane as feedstock; Formosa, Huayi, Binhua, Sinochemare startedPDH projects construction one after another; Meanwhile, Donghua Maoming and Kaijin Wenzhou are signedcontract with local government and launced work. Some new refining and chemical projects are equipped with gas cracking furnaces for large ethylene, which greatly increases the flexibility of feeding. Traditional naphtha cracking projects also carry out feedstock lightening transformation, such as QiluPC,SECCO, etc.
It is foreseeable that China and the US will deepen cooperation in the trade of ethane, propane and otherlight hydrocarbon, which will help promote the lightening of China's olefin feedstock. After protracted tug-of-war, China and the US finally formally signed the phase-one agreement on January 15, 2020, which resulted in a large order for more than USD52.4bn in energy and chemical products. According to the agreement, China will increase purchase from the US forat least USD18.5bn in 2020 and at least USD33.9bn in 2021basedon the amount in 2017.
However, after years of very strong demand growth for olefins and derivatives, the development of the industry may usher in some resistance: a large number of new projects are being deployed, the risk of oversupply is intensified; plastic restrictions and bans on plastics have been introduced in various countries,brings pressurefor polyolefin development; the US seeks a large number of cheap ethylene and derivatives exports, which will have a greater impact on the global market; olefins and derivatives prices are under pressure, higher-cost capacity faces the risk of being eliminated; the global economy is down, and petrochemicals product demand growth is weak. What does not kill us, makes us stronger.The resistance will definitely be transformed into the driving force for the high-quality development of China's olefins and even the petrochemical industry.
Olefins &Feedstock Lightening Forum 2020 will be held in the second quarter in Beihai, Guangxi.What opportunities and challenges do the petrochemical and olefins production enterprises face under the new situation? Faced with more intense industry competition, how can companies reposition themselves to stand out from the crowd? After the development of the past year, what new vitality has the industry erupted? Join us, for a deeper discussion together.Industrial visit will also be arranged.
2. Research and judgmenton olefinsfeedstockdiversification and lightening
3. Cost analysis and economic comparison of different technology routes
4. Opportunities and challenges brought by trade friction to petrochemical industry
5. Olefins and derivatives production process and catalystimprovement
6. Feedstock lightening transformation technologyand engineering caseintroduction
7. Global light hydrocarbon resourcesanalysis (distribution, reserves, terminals, ships, transportation, supply &demand, prices)
8. Olefins production technologydevelopment and commercialization (STO, Chinadeveloped PDH, crude oil direct to olefins, etc.)
9. Focus on new projects: PDH, ethane cracking, LHCU, CTO/MTO, refining and chemical integration
10. Development and application of olefinsrelated materialsfor medical(polyolefin, PC, SEBS, PVC, nitrile rubber, etc.)
11. Opportunities and challenges brought by the feedstock lightening to hydrogen energy, butene-1, butadiene, etc.
12. ASEAN market and the “the Belt and Road” new opportunitiesfor olefin industry chain
13. Industrial travel