AFPM '12: Study lists most attractive petchem for Alberta

02 April 2012 22:26  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS)--A recent study rated the top petrochemical investments for Alberta in Canada, according to a presentation made on Monday.

The list rated the chemicals based on such factors as feedstock, outlook for derivatives and benefits from clustered production, according to the report, presented by Anthony Palmer, managing director of IHS Chemical Consulting. The study graded the chemicals' attibutes on a 0-8 scale.

He discussed the report during the International Petrochemical Conference (IPC), held by the American Fuel & Petrochemical Manufacturers (AFPM).

Ethylene glycol (EG)/ethylene oxide (EO) receved the highest score of 7.2.

The other high-ranking chemicals include ammonia, urea, methanol; polyethylene (PE); EO and derivatives, polypropylene (PP); propylene glycol (PG) and other propylene oxide (PO) derivatives. All of these chemicals were rated at 6.5 or higher.

Other chemicals that did not rank as highly could still be viable investments, Palmer said.

The feedstocks considered by the study were derived from coal, oil sands, conventional oil and conventional natural gas. The study did not consider feedstock from shale-gas production in Alberta.

A producer could have a technology advantage for the product, he said. Also, considerations for co-products and by-products may not be key factors for a particular producer.

For Alberta, the next step is to conduct more detailed studies, said Neil Shelly, executive director for Alberta's Industrial Heartland Association (AIHA).

The AIHA is a non-profit planning and industrial group that includes participation of local governments within the province.

These studies would take a closer look at the availability of feedstock, Shelly said. The studies could also include a full business-case evaluation of the chemicals, Shelly said.

The IPC lasts through Tuesday.

By: Al Greenwood
+1 713 525 2645

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