News Feed

Asia’s and ME’s downstream petchem future in the face of US’ shale boom

Posted on : 07 Jun, 2013

 

While the US energy and chemicals sectors cheer and celebrates the shale gas revolution, Asian and Middle Eastern petrochemicals players are feeling the pressure on their naphtha-based sector. Cheap shale gas-derived ethane is directly impacting on Asia’s and Middle East’s high-cost naphtha-based petrochemicals industry, creating an increasingly competitive environment for the Asian and Middle Eastern players.

 

By-products from shale gas and naphtha are used in downstream plastics and fiber sectors, such as in the making of toys, shrink wraps, food packaging, grocery bags and etc. With naphtha-derived ethylene cost standing at three times higher than that of shale gas’, the Asian and ME players are likely to go into a downward spiral fiery with shale gas-based US petchem sector. Staying cost-competitive against the blooming US sectors will only get tougher and a shift in production strategy is likely in the next few years.

 

At CMT’s 20^th Asia Petrochemical Summit held in Singapore on September 26-27, industry leaders will look into trends and key challenges in China, India, South Korea, ASEAN and Middle East. Top executives from upstream/downstream petchem industry are set to attend the annual summit for a deeper analysis and market forecast of the Asian petchem market.

 

For more event details or enquiries, please contact Ms. Huiyan at huiyan@cmtsp.com.sg or Tel. +65 6346 9113.