Petrochemical market.. eyes on glut to growth..

August 2023.? In the last petrochemicals featured content newsletter ~ Petrochemicals and their path(s) forward to achieve carbon neutrality... can it be accomplished..?? ~ we touched upon how one needs to take into consideration that petrochemicals will be driving – in the near & medium term – oil demand growth.??

Hart Energy (June 14):? IEA: Global Oil Demand Growth to Slow Significantly by 2028

“The petrochemical sector will remain the key driver of global oil demand growth, with liquified petroleum gas (LPG), ethane and naphtha accounting for more than 50% of the rise between 2022 and 2028 and nearly 90% of the increase compared with pre-pandemic levels,” the IEA wrote.

That there will be – by necessity – an expansion of global Energy Complexes(inclusive of Refining, Petrochemicals, Hydrogen, BioFuels, etc).? Where, recently Industrial Info Resources (IIR) News reported that Saudi Arabia Invests in Petrochemical Projects

Having nearly one-fifth of the world's proven petroleum reserves, Saudi Arabia is the highest petrochemical producer in the Middle East region and continues to invest in projects, including grassroot, unit additions, equipment upgrades and debottlenecking.

Recently, Saudi Aramco Total Refining and Petrochemical (SATORP) (Al-Jubail, Saudi Arabia) awarded engineering, procurement, and construction contracts to Hyundai Engineering Company Limited (Seoul, South Korea), and Maire Tecnimont SpA (Rome, Italy) to develop one of the largest mixed-load steam crackers in the Gulf region, with a capacity to produce 1,500 kilotons of ethylene per year. The expansion is expected to attract more than US$4 billion in additional investment in a variety of industrial sectors, including carbon fibers, food additives, lubes, drilling fluids, detergents, automotive parts and tires.

This awarding of these contracts follows from the earlier Oil & Gas Journal report

Satorp lets EPC contracts for integrated Amiral petrochemical complex

Saudi Aramco and @TotalEnergies SE have let contracts to service providers for construction of a proposed grassroots petrochemical complex to be integrated into the existing Satorp 460,000 b/d full-conversion refinery complex at Jubail, Saudi Arabia.

As one is aware of the ever evolving & growing relationship between Saudi Arabia & China..

ChinaDaily.com.cn :? Aramco expands China presence to satisfy demand

Saudi Aramco plans to continue expanding its downstream presence in China to support the country's energy security while facilitating its green transition, said a top company official.

"The scale of the industrial footprint and China's demand growth present significant opportunities for Aramco. China is strategically important to our business growth in Asia and worldwide, and we will remain a reliable source of long-term oil supply," said Mohammed Y Al Qahtani, Saudi Aramco's president of downstream business.

Though one has to be aware that there is a petrochemical glut occurring…

汤森路透 (June 25):? China refiners stoke petrochemical glut in market-share war

China is relentlessly adding new petrochemical capacity despite a global glut as the country's refiners diversify from transport fuels, threatening to depress margins worldwide through 2024 as weak economic growth saps demand.

In an ominous sign for producers of the chemicals used in plastic packaging, polyester clothing and auto parts, refiners' profit margins on processing naphtha to make ethylene turned negative last week for the first time since October.

However even with such a supposed glut, signs point to the Petrochemical industry growing by $200bn+ over the next 7+ years…

Transparency Market Research:? Petrochemicals Market

Where the US is poised to reap benefits.? Not only from cheap NGL feedstocks originating from the Plays like the Permian but as well for companies like Enterprise Products Partners L.P. who are situating themselves to be positioned to benefit from Upstream ..

Yahoo Finance (Aug 1):? Enterprise Begins Service for its Texas NGL Fractionator

Enterprise announced the start of service at its 12th natural gas liquids ("NGL") fractionator in Chambers County, Texas, adding an incremental 150,000 barrels per day ("BPD") of nameplate capacity. Supported by long-term customer agreements, the new facility increases Enterprise’s NGL fractionation capacity to 1.2 million BPD at the Chambers County complex. Companywide, Enterprise now has approximately 1.7 million BPD of NGL fractionation capacity. The new fractionator is among $3.8 billion of major growth projects beginning service in 2023.

"The addition of our newest fractionator is being driven by growing domestic NGL production in the Permian Basin as new natural gas processing plants are brought online," said A.J. "Jim" Teague, co-chief executive officer of Enterprise’s general partner. "We recently began service at our sixth gas processing plant in the Midland Basin, with three other Permian Basin gas plants expected to come online by the end of the first quarter of 2024.

..to Midstream to Downstream (..in the form of exports..)

RBN Energy, LLC (August 2nd): ?Nothing Compares 2 U - Enterprise's NGL And Petchem Distribution And Export Machine.??

Published by: Housley Carr

Enterprise Products Partners doesn’t just extract mixed NGLs from associated gas at processing plants, transport that Y-grade to the NGL hub at Mont Belvieu, and fractionate NGLs into “purity products” like ethane, propane and butanes. The midstream giant also distributes purity products to Gulf Coast steam crackers and refineries, converts propane to propylene at its two propane dehydrogenation (PDH) plants, distributes ethylene and propylene, transports propane and butane to wholesale markets across much of the eastern half of the U.S., and exports a wide range of products — ethane, LPG, ethylene and propylene among them — from two Enterprise marine terminals on the Houston Ship Channel. (Another export terminal in Beaumont, TX, is in the works.)?

Fortunately IIR Energy will be with you every step of the way as this market unfolds & transitions for IIR Energy supplies Chemical Marketers & Traders with the fundamental market knowledge needed for success in the petrochemical commodities supply chain by delivering continuously updated market intelligence in the chemical sector. Gain Instant knowledge of turnarounds and new capacity additions to predict price direction.

Such as Unplanned Middle East Market events

To planned outage Alerts

To near real time reporting as weather & other events unfold

To intel on Companies and their investment direction.? Globally.

IIR News: ?Tunisian Chemical Group Invests in Phosphate, Fertilizer Production

Tunisian Chemical Group (GCT), which mines phosphate in Tunisia to produce chemicals such as phosphoric acid and fertilizers, is investing about US$191 million in 53 capital and maintenance projects, the bulk of which are at its one of its production sites in Gabes.

Which will all be bundled and presented in Industrial Info’s

Market Outlook Presentation and Networking Event

Join IIR's industry experts for our 2024 North American Market Outlook being held at the White Oak Estate and Gardens in Baton Rouge, Louisiana, on October 25, 2023, at 4:00 PM.?

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