Refining surplus to raise aromatics supply - analyst

26 November 2008 11:46  [Source: ICIS news]

LONDON (ICIS news)--Proposed refining capacity additions are significantly outpacing demand growth as far as 2014 and could lead to a higher availability of aromatics in the west, downstream oil consultant Matthew Chadwick of Wood Mackenzie said on Wednesday.


Demand has deteriorated and forecasts have been revised downwards due to the end of high oil prices, deteriorating OECD economies and crisis in the financial industry, said Chadwick in a paper prepared for the 7th ICIS European Aromatics and Derivatives Conference in Cologne.


Although many refining projects would face delays and even cancellations, Chadwick said, the most competitive projects and those developed by strong sponsors – many of which are national oil companies – would progress.


A large global gasoline surplus was forecast, accelerated by the increasing use of ethanol to fuel cars, especially in the US and Brazil.


“It seems likely that a growing surplus of gasoline in the Atlantic Basin will result in increasing availability of aromatic material from refiners in Europe and North America,” he added.


The two-day conference ends on 27 November.


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By: Mark Watts
+44 20 8652 3214

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