APIC ’07: Asia to be spared ethylene flood – expert

17 May 2007 06:47  [Source: ICIS news]

TAIPEI (ICIS news)--The financial impact of a supply glut of ethylene in Asia with capacity expected to increase by 40m to 50m tonnes over the next decade could be softened by delays to projects in the Middle East and material redirected to Europe, said a Japanese expert on Thursday.  

 

Project delays in Iran and India would reduce how much ethylene floods into Asia, said Masahiro Yoneyama, president of Japanese consultants Access Intelligence KK Yoneyama at the Asia Petrochemical Industry Conference (APIC).

 

"Iran has finance issues and they only want to use local contractors, which will also delay cracker projects," he told delegates at APIC.

 

India was facing difficulties securing engineers and contractors to complete projects, he added.

 

"There are not many projects happening in Europe and I expect they will be in short supply," he said.

 

"I presume a portion of the ethylene [from Middle East and Asia] will go to Europe," he said.

 

The delays could prop up operating rates at crackers ensuring they did not fall below 87% capacity and that might cushion some companies from the industry downcycle expected in 2010, said  Yoneyama.

 

By: Matt Kovac
+65 6780 4359

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