Aromatics '04: China facing growing styrene deficit

24 November 2004 14:28  [Source: ICIS news]

ANTWERP, Belgium (CNI)--China will face a growing deficit in styrene over the next few years, aromatics industry players were told here on Wednesday.

 

Hidde Goinga, Shell Chemicals’ global business manager for styrene monomer (SM), told delegates at the Third European Aromatics and Derivatives Conference* that China will need to import 5m tonne/year of styrene by 2012.

 

"China will have eaten up 50% of the world’s growth in styrene by 2012 and its styrene deficit will have grown to nearly 10m tonne/year," noted Goinga.

 

Shell is currently building a $4.3bn (Euro3.3bn) complex in Nanhai, China in a 50:50 joint venture with China National Offshore Oil Corp (CNOOC). The project, which Goinga described as the largest Sino-foreign project ever implemented, is based on an 800 000 tonne/year cracker and includes a 560 000 tonne/year styrene facility. The complex is due to start up in the third  quarter of 2005.

 

Goinga said that plans are also in place to add a refinery at the site to enhance upstream integration. He added that Shell would welcome other investors next to the site. 'Over the fence’ investment would have many advantages he said, notably the availability of multiple feedstock, security of supply, logistics infrastructure, shared services as well as an experienced workforce.

 

*Organised by global price reporting and market intelligence service ICIS-LOR, European Chemical News and consultants International eChem, the conference concludes today (Wednesday). ICIS-LOR and ECN are part of the same publishing group as CNI.

By: Elaine Burridge
+44 20 8652 3214

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