The hottest petrochemical industry in North Americ

North American petrochemical industry is busy adjusting

North American petrochemical industry is busy adjusting

April 1, 2015

[China paint information] the decline in oil prices is making the investment plan of North American Chemical Industry variable. In particular, the future trend of oil prices is still uncertain, and participants in the petrochemical product chain have to readjust their expectations. Recently, Kevin swift, chief economist of the American Council of chemical industry (ACC), said: "60% of the projects planned based on cheap raw materials were foreign direct investment. In 2014, there were an average of 9 project construction announcements per month, while so far this year, there are only 3 project announcements per month."

the profit expectation drops, and many chemical enterprises plan to make other plans.

Steve levandovsky, business manager of IHS chemical olefins, said: "In the short term, the profitability of all raw materials with cost advantages - American ethane, Middle East ethane and Chinese coal has been greatly squeezed. According to IHS chemical monitoring data, since the price of crude oil began to decline, the price of ethylene in North America has fallen by 36%, Europe by 24%, and Asia by 34%. In fact, producers have adjusted their profit expectations. The price of propylene also fell sharply, with North America falling by 25%, and Europe by 34% It was 35%, while Asia fell 36%

chuck Carr, senior director of global olefins at IHS, said: "the global price of pure benzene also fell sharply, with 57% decline in North America, 51% decline in Europe and 57% decline in Asia."

ihs chemical said, "the propane dehydrogenation (PDH) project in North America is also under pressure. Although the projects under construction by Dow and enterprise will continue to be promoted until they are put into production, other planned projects may be suspended. Some companies even hope to reduce labor costs from the oil industry, thereby reducing capital expenditure. However, in the long run, there will be many new PDH projects in North America."

since the return rate of some projects may not be as high as previously expected, many chemical enterprises began to make other plans. For example, axiall and Lotte announced in February to postpone the final investment decision. Shell chemical said that the final investment decision of the cracking project in Pennsylvania may not be made until 2016, and cancelled the GTL project in Louisiana. IHS chemical levandovsky said, "the ethylene cracking project currently under construction will continue to be implemented until it is completed. Projects that have obtained the final investment decision may be postponed."

8. Batch experiment: Aiming at high demand for samples with the same parameters, some enterprises are optimistic.

Peter Serra, President and CEO of CPChem, said: "North American ethylene producers still have a strong cost advantage. Although the profit margin of the chemical business is under pressure, we expect 2015 to be a good year because the demand for ethylene and polyethylene is still strong. In fact, supported by low energy prices, we expect the growth rate of global polyethylene demand to be slightly higher than that of global GDP."

Nova chemical company of Canada believes that: "the raw material advantage of the petrochemical industry in North America is under pressure only temporarily. In the long run, the oil price will resume to rise, and we will not change the company's development strategy in 2020 and beyond. We will continue to invest in the construction of new polyethylene units in Alberta, and continue to look for investment opportunities in the eastern region where the bent core is fixed on the bent core seat, and the cracking raw material will be 100% ethane in the next few years."

nova chemical company implemented the cracking raw material transformation project in Columba, Ontario last August, realizing all natural gas-liquid feeding. The company is also carrying out several other investment projects. A 450000 ton/year linear low density polyethylene plant will be built in Joffre, Alberta, and it is planned to be put into operation next year. In the East, Nova chemical is considering expanding the capacity of its ethylene unit in Sania, Ontario, to provide sufficient raw materials for the downstream polyethylene unit, and building a second natural gas-liquid transmission pipeline from Marcellus and Utica shale areas to ensure the supply of ethane raw materials for the cracking unit. In addition, there are media reports that the company is still looking for the location of the new high-level sclairtech PE device. Possible locations include Alberta, Ontario, and the Gulf coast of the United States. The company hopes to make a final investment decision in the next year or so

many American companies also plan to export ethane from North America to Europe within ± 0.5% of the set value; 13. Range of strain control rate: 0.005 ~ 5% FS/S14. Accuracy of strain control rate: when the rate is less than 0.05% FS/s, it is supplied to European petrochemical manufacturers as cracking raw materials. Mark Garrett, CEO of Nordic chemical company, said that although the decline in oil prices has enhanced the competitiveness of the company's European business, the company will continue to promote its 240000 ton/year ethane import plan to supply Sweden's Stenon sunder cracking unit