(PRWEB) April 30, 2007
Global Olefins (Ethylene, Propylene) and Polyolefins (Polyethylene, Polypropylene) trade has been on a major upswing raising concern about sustaining growth. The issue today in Polyolefins markets is how long will the up cycle prolong? Will the industry continue to ride the wave? Major Polyolefins consumers such as China and India have booming growth in Derivatives. Will this growth sustain?
Middle East downstream projects are slated to be operational by 2008 -09, and depending on how downstream these projects will be, they are expected to affect the Asia Market & global trade. Some of the Olefins and Polyolefins Project Expansion includes:
- Borouge (joint venture between stated-owned Abu Dhabi National oil Company( ADNOC) and Borealis, a Dutch petrochemical company) has been awarded a $ 3b contract for Polyolefins expansion Project on 12 April 2007
Their contract with Tecnimont Spa will see the development of two Borstar polypropylene plants with a combined annual Capacity of 800,000 tonnes and a new Borstar Polyethylene Plant with an annual capacity of 540,000 tonnes to complement the existing 600,000 tonnes per year unit. Preliminary work on the polyolefins unit will begin immediately and is scheduled to be completed in 2010
The contract with Tecnicas reunidas S.A will see the supply of utilities to all the associated EPC packages for the Borouge 2 Project. Preliminary work will begin immediately and is also scheduled to be completed in 2010
They have also signed a US$1.3 billion contract with Linde Engineering for the construction of a new ethylene Cracker. The contract was awarded on a lump sum turnkey basis, with preliminary work already under way and completion scheduled for 2010 (Source: borouge.)
- In the meantime, SABIC is embarking on major expansion programs in Asia Pacific, especially China - the world's largest Plastics market. In tandem with its expansion programs, Sabic is finalizing plans to set up full-registered companies -in Beijing, Jakarta, Melbourne and Ho Chi Minh City (source: sabic)
- On behalf of affiliate Yanbu National Petrochemical Company (YANSAB), Saudi Basic Industries Corporation (SABIC) has sign a letter of Intent with Aker Kvaerner for the engineering, procurement and construction of its world-scale Polyolefins complex in Yanbu Saudi Arabia. This project is to be executed on a joint venture basis with China Petrochemical Corporation (SINOPEC) Group. Aker Kvaerner will be the joint venture leader, and expects its involvement to be in the region of USD 400 million (sources: Aker Kvaerner)
- Tasnee Petrochemicals Company (Tansnee), Sahara Petrochemical Company (Sahara) and Saudi International Petrochemical Company "Sipchem", in Partnership with Basell Polyolefins announced the awarding of the Ethylene Cracker and Utilities project Linde AG of Germany and Samsung Engineering Company of South Korea (sources: ameinfo)
Given that these projects will be fuelled by local feedstock, the likelihood of massive feedstock cut downs in the Asia market is certain. As a result, the Asian polyolefin industry must gear-up to meet with the challenge from the Middle East.
Other developments in 2007, includes the rising Crude oil prices giving additional boost to North East Asian Ethylene suppliers and trader holding on to high offers due to limited supply from several plants shutdown. New Olefin technologies, in particular, the Propylene technology choices have opened up more feedstock options
On the 11-12 June 2007 in Singapore CMT will hold its 9th Asia Olefins and Polyolefins conference featuring leading industry expert from, Petrochemical Corporation of Singapore, Titan Petrochemical, United Overseas Bank Group, Basell Polyolefine, AB Electrolux, London Metal Exchange, Basell Asia Pacific, Plastic Industry Club -Federation of Thai Industries, Lurgi AG, KBC Advanced Technology, Noble Resources Ltd, Nexant, Purvin & Gertz, Borouge and many more to discuss on the pertinent issues including:
- Shifting trade pattern of Petrochemical feedstock interplay between Aromatics and Olefins
- Olefins & Polyolefins project updates in Singapore, Middle East, China, India, Indonesia, Malaysia
- New Propylene Technology choices have opened up new feedstock options.
- LME's Future contract in Polypropylene (PP) and Linear Low Density Polyethylene (LLDPE)/ LME Plastics Price Risk Management Tools
- Electrolux's Perspective on Material sourcing and purchasing strategy
- Finishing Product trends and Trade flow
CMT is the World Leader in Petrochemical & Energy Conferences operating in over 24 countries
CMT has been organizing Asia Olefins and Polyolefins conference since 1998. CMT's past Asia Olefins & Polyolefins conference was a great success and has been recognized by industry expert to provide value added information in the Petrochemical industry. For more detail, please visit us at http://www.cmtevents.com
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