27 February 2013 09:32 [Source: ICIS news]
SINGAPORE (ICIS)--China’s CNOOC and Shell Petrochemicals Co (CSPC) will stop feeding any liquefied petroleum gas (LPG) to its 950,000 tonne/year cracker at Huizhou in Guangdong from March to save costs, a CNOOC source said on Wednesday.
However, LPG has lost its cost advantage against naphtha due to its rising prices, the source said.
Prices of LPG from CNOOC Huizhou has increased to yuan (CNY)6,670/tonne ($1,070/tonne) ex-works (EXW) on 27 February from CNY6,400/tonne on 1 February, ICIS data showed.
Usually, LPG should be at least $40/tonne below naphtha to make it economically viable for crackers, market sources said.
CSPC’s cracker will be fed with naphtha entirely next month, he added.
CSPC is a 50:50 joint venture between China National Offshore Oil Corp (CNOOC) and Shell Petrochemicals Co.
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