News Post
Asia petrochemicals boost global naphtha demand
Global demand for naphtha will expand faster than for any other light products through 2020, spurred by rising needs of the petrochemical industry in Asia, the Organization of Petroleum Exporting Countries said Thursday.
Naphtha use in the Asia-Pacific region will grow by 22% to 4.4 million bpd in this period, with China accounting for more than a third of the increase, OPEC said in its World Oil Outlook report. That’s double the expected growth in demand for natural gas liquids, including ethane and propane, to 3.2 million bpd, the producer group said.
“Naphtha is anticipated to be the fastest growing light product over the forecast period, especially in developing Asian countries,” OPEC said.
A “relocation” of the petrochemical industry from Western countries to nations in Asia will have the greatest effect on Europe, where naphtha and NGLs use will decline by 100,000 bpd in the period ending in 2020, according to OPEC.
In the US, where fewer than 20% of ethylene plants use naphtha as feedstock, demand for the fuel will decline “marginally” as rising supplies of shale gas will sustain the production of comparatively cheap ethane and propane, OPEC said.
In the Middle East, where petrochemical producers have used mainly ethane and propane in making ethylene, new refinery and chemical plants will start using naphtha as a feedstock, the group said.
Naphtha demand is projected to double to 200,000 bpd, while demand for ethane, propane and other NGLs will rise more slowly by 18% to 1.3 million bpd, according to the forecast.
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