28 May 2008 05:37 [Source: ICIS news]
By Abdul Hadhi
SINGAPORE (ICIS news)--Petrochemical firms face feedstock challenges even as the world consumes more of their products as global energy demand may double over the next 40 years, Shell Chemicals executive vice-president Ben van Beurden said on Wednesday
The UK-Dutch petrochemical giant was also considering building a styrene monomer/propylene oxide plant in Asia-Pacific as part of plans to grow its regional portfolio, he said in an address to the Asian Petrochemical Industry Conference (APIC).
Underlining Shell’s commitment to the region, Van Beurden said that "plans were under consideration for significant new manufacturing investments".
These plans, which include a "world-scale" styrene monomer/propylene oxide project, were aimed at strengthening Shell Chemicals' regional product and services portfolio.
“The key to this region’s and the world’s future success will be innovation to access energy for economic development, to provide new chemical feedstock sources and to develop cleaner, more energy efficient technology and products,” he said.
Population growth and rapid economic development in Asia could see the world using double the amount of energy in 2050 compared with current rates, he said, as well as raise petrochemicals demand as plastics continue to replace traditional materials.
Demand, however, will increase at a time when oil and gas extraction becomes more difficult and costly as much of the world’s energy resources were located in the ?xml:namespace>
Despite a significant amount of ethane-based
To meet such challenges in the Asia-Pacific, Shell Chemicals has planned to move to more upstream products while focusing on earnings-driven downstream goods.
“Shell’s strategy is simple… upstream, we search for and recover more oil and gas… downstream, we manufacture and deliver products to our customers in a profitable and sustainable way,” Van Beurden said.
The company had steadily shifted investment in new production capacity towards the Middle East and
Carbon dioxide emissions were rising even faster than energy demand and without quick action, climate change consequences could be serious, Van Beurden added.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|