China’s coal-to-chemical plants viable – Nexant

30 January 2007 06:49  [Source: ICIS news]

SHANGHAI (ICIS news)--Coal-to-chemical plants in China are economically viable with today’s high crude oil prices, a US-based consultant said on Tuesday.

"Very few people project oil will return to $20-30/bbl," said Robert Bauman, vice president at Nexant ChemSystems said at the 2nd ICIS Asian Olefins Conference in Shanghai.

Amid the volatility in crude oil prices, a key traditional petrochemical feedstock, coal prices remained relatively flat, Bauman said.

US oil remained above $50/bbl on Wednesday, sustained by cold weather in northeastern US.

China has invested heavily in coal-to-chemicals technology given rising crude oil prices and increased demand for oil within the country, Bauman said.

The country has the world’s third largest coal reserves at 126bn tonnes but it lacked ethylene supply and oil resources, he added.

It will be competitive for the country to produce chemicals such as Vinyl chloride monomer (VCM), low density polyethylene (LDPE), acetic acid and urea using coal, he said.

The two-day conference ends on Tuesday.

By: Mark Quiner
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly