Petrochemical Industry - Key Geographies Experiencing Change in Feedstock Scenario

Date: March 27, 2012
Pages: 58
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US$ 3,995.00
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Publisher: GlobalData
Report type: Strategic Report
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ID: P2A9CABBC3AEN
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Petrochemical Industry - Key Geographies Experiencing Change in Feedstock Scenario

Summary

GlobalData, the industry analysis specialist, has released its latest research, “Petrochemical Industry - Key Geographies Experiencing Change in Feedstock Scenario”. The study, which is an offering from the company’s Petrochemical Research Group, provides an in-depth analysis of the petrochemical feedstock supply scenario in the key geographies. It explains the reasons for decrease in supply of ethane feedstock in geographies such as the Middle East and Canada. It also explains the impact of new oil and gas discoveries on the petrochemicals industries in the countries such as the US, Brazil and Canada. The study provides the basic petrochemicals (ethylene, propylene, butadiene, benzene, toluene, xylenes and methanol) capacity split by feedstock for all the five regions. The report highlights the change in the supply trend of petrochemical feedstock sources such as natural gas and crude oil.
The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData’s research team of industry experts.

The petrochemicals feedstock supply trend in the major geographies has change in the recent past. While the Middle East countries and Canada are facing lower ethane supplies, the US and Brazil have benefited from the discovery of shale gas and pre-salt reserves respectively. The petrochemicals industry in the Middle East is concentrated in Saudi Arabia, Iran and Qatar and use ethane as the petrochemicals feedstock. Securing new ethane supply contract in the Middle East has become increasingly difficult due to high demand from existing petrochemical plants and the power sector. Due to this many planned petrochemical plants in the region are based on naphtha feedstock.

The natural gas production in Saudi Arabia, Iran and Qatar is increasing at a rapid pace but it is not sufficient o fulfill the requirement from petrochemicals industry. The natural gas production in Saudi Arabia and Iran increased at a Compound Annual Growth Rate (CAGR) of 5.4% and 8.7% respectively. However ethylene capacity in Saudi Arabia and Iran increased at CAGR of 8.1% and 23.1% respectively. Qatar has already imposed a moratorium on its North Dome gas field which has restricted ethane production. Canada is also facing lower ethane production due to lower natural gas supply from Western Canadian Sedimentary Basin (WCSB). The Canadian petroleum industry, however, has also discovered bituminous oil reserve which accounted for more than 50% of its crude oil production in 2010. The Canadian petrochemical industry is now focusing on meeting its future feedstock requirement from these bituminous reserves.

Contrary to the Middle East, where ethane feedstock is becoming scarcer, the US, Brazil and a few European countries have discovered new feedstock sources. The US holds a huge natural gas reserve in the shale rocks which has increased the natural gas supply in the country in the last five years. Many of these reserves contain wet natural gas which would enhance the ethane supply in the country. Brazil has also started the crude oil production from the newly discovered pre-salt reserves and expects to become one of the largest producers of crude oil in the future. Increased crude oil supply will simultaneously enhance naphtha production from Brazil. Shale reserves have been identified in Europe also but there is not significant progress in developing these reserves except in Poland where the commercial production is expected to start in 2015.

Scope

The report provides an in-depth analysis, market opportunities and challenges for manufacturers of petrochemicals, worldwide. It contains detailed information about major feedstock used for petrochemical production and their advantage. Its scope includes -
  • Feedstock used in various petrochemical industries including Asia Pacific, North America, Europe, Middle East and, South and Central America
  • Historical and forecasted basic petrochemical capacity in the Middle East
  • Basic petrochemical capacity share by region
  • Natural gas production in Saudi Arabia, Iran, Qatar and the US
  • Ethylene capacity growth and ethane supply scenario in major Middle East countries such as Saudi Arabia, Iran and Qatar
  • Crude oil production in Canada and share of bituminous reserve in total crude oil production
  • Crude oil production forecast from the Brazilian pre salt reserves
  • Details of Europe shale gas development

Reasons to buy

The report will enhance your decision making capability in a more rapid and time sensitive manner. It will allow you to -
  • Understand the impact of feedstock usage on the petrochemicals production in various geographies
  • Develop business strategies with the help of specific insights on feedstock supply scenario in the global petrochemicals industry
  • Identify opportunities in the Middle East, European, the US, Canadian and Brazilian petrochemical industries
  • Identify prospective investment targets through updates on petrochemicals feedstock usage and discussion on newer feedstock sources
  • Increase future revenue and profitability with the help of insights on the future opportunities and critical success factors in the global petrochemical industry
1 TABLE OF CONTENTS

1.1 List of Tables
1.2 List of Figures

2 INTRODUCTION

2.1 Overview
2.2 GlobalData Report Guidance

3 CRUDE OIL AND NATURAL GAS FRACTIONS ARE THE MAJOR SOURCE OF PETROCHEMICALS AND CONTROL THE FEEDSTOCK SUPPLY DYNAMICS

3.1 Steam Cracking is the Dominant Technology Used for the Production of Basic Petrochemicals Worldwide
3.2 Naphtha Derived Petrochemicals are Sensitive to Crude Oil Price Fluctuations
3.3 Natural Gas Liquids (NGLs) are Fractionated from Natural Gas and Used as Feedstock
3.4 Coal Usage as Petrochemical Feedstock is Concentrated in China

4 THE GLOBAL PETROCHEMICAL INDUSTRY IS DOMINATED BY NAPHTHA FOLLOWED BY NATURAL GAS

4.1 Development of Crude Oil Refineries Resulted in Naphtha-Based Petrochemical Industry in Asia Pacific
4.2 Natural Gas Reserves in North America Provide Ethane Feedstock for the Petrochemical Industry
4.3 Europe Petrochemical Industry Relies on Crude Oil Imports for Naphtha Feedstock
4.4 Natural Gas is a Dominant Feedstock in the Middle East Due to its Easy Availability and Lower Cost
4.5 The South and Central American Petrochemical Industry Uses Diversified Feedstock Slate

5 MIDDLE EAST PETROCHEMICAL INDUSTRY IS LOSING THE CHEAPER ETHANE FEEDSTOCK ADVANTAGE AND SHIFTING TO NAPHTHA FEEDSTOCK

5.1 Cheaper Ethane Feedstock Led to Rapid Development of the Middle East Petrochemical Industry in the Last Decade
5.2 Middle East is Facing Feedstock Supply Constraint due to Inadequate Natural Gas
5.3 Increased Ethylene Capacity, OPEC Quota and Underdeveloped Non-Associated Gas Reserves are Creating Scarcity of Ethane in Saudi Arabia
  5.3.1 OPEC Quota is Limiting the Natural Gas Production in Saudi Arabia
  5.3.2 Ethane Production is Limited from Non-Associated Gas Reserves Due to High Cost of Production
  5.3.3 Ethylene Crackers are Driving the Demand for Ethane in Saudi Arabia
  5.3.4 Increase in the Domestic Demand has Brought Down Saudi Arabia’s Ethane Exports
5.4 Natural Gas Production is Unable to Support the Flourishing Petrochemical Industry in Iran
  5.4.1 Cracker Capacity has Increased at a Faster Pace than Natural Gas Production
  5.4.2 Mega Petrochemical Complexes in Iran Utilize Gaseous Feedstock
5.5 Qatar Natural Gas Production is Restricted Due to Moratorium on Gas-based Industrial Projects
5.6 Increasing Demand from Power Sector is Creating Short Supply of Natural Gas for Petrochemical Industry in the Region
  5.6.1 Power Sector Account for Bulk of the Natural Gas Consumption in the Middle East
  5.6.2 Increase in Power Consumption is Creating Shortage for Petrochemical Feedstock
5.7 Many of the Planned Projects are Utilizing Naphtha as a Major Feedstock Due to Uncertainty over Ethane Supply

6 NORTH AMERICA PETROCHEMICAL INDUSTRY IS ALIGNING ITSELF TO UTILIZE NEWER FEEDSTOCK SOURCES

6.1 The US Petrochemicals Industry is Anticipating Cheaper Feedstock Supply from Shale Gas Development
  6.1.1 Natural gas Production in the US is Driven by the Addition of Capacity from Shale Gas Reserves
  6.1.2 Ethane Rich Shale Formations are Useful from Petrochemicals Industry’s Perspective
  6.1.3 Marcellus Shale is Emerging as a Petrochemical Feedstock Source
6.2 Declining Ethane Production from Traditional Gas Reserves is Forcing Canada to Explore Oil Sand Reserves
  6.2.1 Lower Price Made Ethane the Dominant Petrochemical Feedstock in Canada
  6.2.2 Ethane Availability has Declined in the Recent Past due to Lower Natural Gas Production from Western Canada
  6.2.3 Canada Petrochemical Industry is Awaiting to Utilize Bituminous Reserves as a Feedstock Source

7 DISCOVERY OF PRE-SALT RESERVES IN BRAZIL IS EXPECTED TO PROVIDE MORE ECONOMICALLY AVAILABLE PETROCHEMICAL FEEDSTOCK

7.1 Brazilian Petroleum and Petrochemical Industry is Set to Expand with the Increased Oil Production
7.2 Government is Promoting the Development of Pre-Salt Reserve by Implementing Regulatory Reform

8 EUROPE IS MAKING STRIDES IN SHALE GAS EXPLORATION AND REDUCING THE DEPENDANCY ON RUSSIAN GAS RESERVES

8.1 Europe is Making Efforts to Develop its Shale Gas Resources Aiming to Decrease its Dependence on Russian Gas
8.2 Higher Cost and Lower Water Availability is Delaying the European Shale Gas Development
8.3 Quality of Gas will Decide the Feedstock Supply Scenario in Europe

9 APPENDIX

9.1 Definitions
  9.1.1 Installed Plant Capacity
  9.1.2 Key Feedstock
  9.1.3 Process
  9.1.4 Technology
9.2 Abbreviations
9.3 GlobalData’s Research Methodology
  9.3.1 Coverage
  9.3.2 Secondary Research
  9.3.3 Primary Research
  9.3.4 Expert Panel Validation
9.4 Contact Us
9.5 Disclaimer

LIST OF TABLES

Table 1: Basic Petrochemicals Output from Naphtha, %
Table 2: Basic Petrochemicals Output from Natural Gas, %
Table 3: Basic Petrochemical Industry, Global, Coal Based Capacity by Country, %, 2010
Table 4: Global Petrochemical Industry, Basic Petrochemical Capacity by Feedstock, %, 2010
Table 5: Asia Pacific Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Table 6: North America Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Table 7: Europe Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Table 8: Global Petroleum Industry, Countries with Largest Natural Gas Reserves, tcf, 2011
Table 9: Middle East and Africa Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Table 10: South and Central America Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Table 11: Petrochemical Industry, the Middle East, Basic Petrochemicals Capacity, MMtpa, 2000-2015
Table 12: Global Petrochemical Industry, Basic Petrochemicals Capacity Share by Region, 2000-2010
Table 13: The Middle East Basic Petrochemicals Industry, Major Plants Start up, 2005-2010
Table 14: Saudi Arabia Petroleum Industry, Proven Gas Reserves, %, 2010
Table 15: Saudi Arabia Natural Gas Industry, Production, bcf/d, 2000-2010
Table 16: Saudi Arabia Petrochemical Industry, Ethane Production and Ethylene Capacity, 2002-2010
Table 17: Saudi Arabia Petrochemical Industry, Ethane Production and Exports, Trillion BTU, 2002-2010
Table 18: Saudi Arabia Petrochemical Industry, NGLs Production and Exports, MMbbl, 2000-2010
Table 19: Iran Petrochemical Industry, Ethylene Capacity and Natural Gas Production, 2000-2010
Table 20: Iran Ethylene Industry, Ethane Based Ethylene Plant Details, 2010
Table 21: Iran Petrochemical Industry, Major Ethane Plant Details, 2010
Table 22: Qatar Petrochemical Industry, Ethylene Capacity and Natural Gas Production, 2000-2010
Table 23: Middle East Natural Gas Industry, Consumption Split by Sectors, %, 2008
Table 24: Middle East Power Industry, Consumption by Country, Gigawatt Hour, 2000-2010
Table 25: The Middle East Power Industry, Generation Capacity by Key Countries, MW, 2010
Table 26: The Middle East Power Industry, Major Gas-Based Active Plant Details in Key Countries, 2010
Table 27: The Middle East Power Industry, Major Gas-Based Active Plant Details in Key Countries, 2010 (Contd.)
Table 28: Middle East Petrochemical Industry, Planned Projects Based on Naphtha, 2012-2016
Table 29: Middle East Petrochemical Industry, Planned Projects Based on Naphtha, 2012-2016 (Contd.)
Table 30: The US Natural Gas Industry, Production, bcf/d, 2000-2010
Table 31: The US Petrochemical Industry, Companies Utilising Ethane from Marcellus Shale
Table 32: Canada Petrochemical Industry, Ethane Production, MMcf/d, 2000-2010
Table 33: Canada Petroleum Industry, Crude Oil Production, MMbbl/d, 2010-2025
Table 34: Canada Oil Sand Industry, Major Bituminous Fields Details, 2010
Table 35: Canada Oil Sand Industry, Major Bituminous Fields Details, 2010 (Contd.)
Table 36: Canada Oil Sand Industry, Major Bituminous Fields Details, 2010 (Contd.)
Table 37: Canada Oil Sand Industry, Major Bituminous Fields Details, 2010 (Contd.)
Table 38: Petrobras, Crude Oil Production Forecast, MMbbl/d, 2011–2020

LIST OF FIGURES

Figure 1: Basic Petrochemical Industry, Production Process
Figure 2: Basic Petrochemical Industry, Global, Coal-Based Capacity by Country, %, 2010
Figure 3: Global Petrochemical Industry, Basic Petrochemical Capacity by Feedstock, %, 2010
Figure 4: Asia Pacific Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Figure 5: North America Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Figure 6: Europe Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Figure 7: Middle East Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Figure 8: South and Central America Petrochemical Industry, Basic Petrochemicals Capacity by Feedstock, %, 2010
Figure 9: Petrochemical Industry, the Middle East, Basic Petrochemicals Capacity, MMtpa, 2000-2015
Figure 10: Global Petrochemical Industry, Basic Petrochemicals Capacity Share by Region, 2000-2010
Figure 11: Saudi Arabia Petroleum Industry, Proven Gas Reserves, %, 2010
Figure 12: Saudi Arabia Natural Gas Industry, Production, bcf/d, 2000-2010
Figure 13: Saudi Arabia Petrochemical Industry, Ethane Production and Ethylene Capacity, 2002-2010
Figure 14: Saudi Arabia Petrochemical Industry, Ethane Production and Exports, Trillion BTU, 2002-2010
Figure 15: Saudi Arabia Petrochemical Industry, NGLs Production and Exports, MMbbl, 2000-2010
Figure 16: Iran Petrochemical Industry, Ethylene Capacity and Natural Gas Production, 2000-2010
Figure 17: Qatar Petrochemical Industry, Ethylene Capacity and Natural Gas Production, 2000-2010
Figure 18: Middle East Natural Gas Industry, Consumption Split by Sectors, %, 2008
Figure 19: Middle East Power Industry, Consumption by Country, Gigawatt Hour, 2000-2010
Figure 20: The US Natural Gas Industry, Production, bcf/d, 2000-2010
Figure 21: Canada Petrochemical Industry, Ethane Production, MMcf/d, 2000-2010
Figure 22: Petrobras, Crude Oil Production Forecast, MMbbl/d, 2011–2020

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