15 February 2010 18:44 [Source: ICIS news]
TORONTO (ICIS news)--Petroleum coke-based feedstock could play a key role in building up oil sands-linked petrochemical capacities in Canada’s Alberta province, but costs and financing are a concern, analysts said on Monday.
A recent study by FdP Associates on chemical production opportunities in
Petroleum coke stockpiles in the oil sands sector kept growing at a rate of 6.0m-6.5m tonnes/year and could reach 500m tonnes by 2040 if it is not used, it said.
However, observers pointed to significant logistics investments that would be needed in order to make use of the petroleum coke as feedstock.
The petroleum coke was currently stored at several locations and would need to be transported to a central location, “which would be expensive,” said John Cummings, an independent Toronto-based petrochemicals analyst, in a research note.
The industry may find it hard to persuade the
But Cummings also noted that activity in
He pointed in particular to recent project announcements by ExxonMobil’s Canadian affiliate, Imperial Oil, as well as announcements by ConocoPhillips, Total, Suncor, BP and Husky. Also, last week PetroChina agreed to buy a stake in oil sands project in Canada.
The oil sands industry continues to be under rising criticism because of its environmental footprint.
In related news,
($1 = €0.73)
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