NPRA ‘07: Iran ethylene may never reach market

26 March 2007 22:34  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--The excess ethylene capacity that has been due from Iran for several years now may never arrive, said an ethylene producer this Monday.

Crackers that are at least two to three years behind schedule, coupled with the ongoing political turmoil in the region, exacerbated by Iran's recent seizure of British sailors and marines, will probably prevent any Iranian ethylene capacity from ever hitting the market, said Grant Thomson, senior vice president, olefins and feedstocks, NOVA Chemical.

While the crackers in more stable countries in the region will be on stream in the next few years, that ethylene capacity will more than likely be absorbed primarily by the growing Asia market, he said.

"Growth in Asia may well be enough to use up Middle East capacity," Thomson said on the sidelines of the 32nd National Petroleum Refiners Association petrochemical meeting.

Ethylene producers in North America and Europe may not be able to send their product into Asia but these producers may not have to rationalize or divest due to lost markets, he added.

By: Ivan Lerner
+1 713 525 2653

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