APIC ’07: China may delay projects on costs

17 May 2007 06:04  [Source: ICIS news]

TAIPEI (ICIS news)--Petrochemical projects in China could be delayed by one to two years as construction costs rise and the delivery of material and equipment is delayed, an industry expert said on Thursday.

Most of the projects were to be completed around 2010 and companies could save on costs if they avoided the peak period, SRI consultant Kazuaki Nakamura said at the 28th Asia Petrochemical Industry Conference.

He was presenting a paper on behalf of his Beijing-based counterpart Qu Guangdong who could not be in Taiwan.

China’s ethylene production was expected to increase at an annual average growth rate of 10.2% from 2006-2015, if all the plants were completed on schedule, Nakamura said.

One large joint venture cracker is under construction while six new ones are scheduled to be built during 2006-2012. Two methanol-to-olefins (MTO) projects are also in the pipeline.

These projects could reduce polyethylene (PE) imports and it would reach the lowest point in 2011, Nakamura said, adding that this should largely affect the Asian producers.

Imports of the five main polymers were expected to fall to 9m tonnes in 2010 from 11.8m tonnes in 2006, he said.

However, future import of ethylene glycol (EG), styrene monomer/polystyrene (SM/PS) and ethylene dichloride/vinyl chloride monomer/polyvinyl chloride (EDC/VCM/PVC) will be maintained at current levels, he added.

By: Florence Tan
+65 6780 4359

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