08 May 2013 15:39 [Source: ICIS news]
LONDON (ICIS)--Austrian producer OMV’s decision to invest €230m ($303m) in boosting its butadiene (BD) production shows that a commitment to BD is an increasingly attractive move for oil refining and petrochemical groups looking to build their value chain, an investment bank said on Wednesday.
“Butadiene is an increasingly popular option for refineries to expand the value chain and their margin in petchems – for their steam crackers – given the demand-supply dynamics and the margin trends for the product in recent years,” said Robert Rethy, an analyst at WOOD & Company, in a note to investors.
Hungarian oil, gas and petrochemical group MOL is another European player that has committed to a BD investment, with its TVK petrochemical subsidiary constructing a 130,000 tonne/year BD plant at its site in Tiszaujvaros, northern Hungary, to be completed by 2015, Rethy noted.
The OMV investment should by mid-2015 deliver a new plant at the group’s refining and petrochemical site in Burghausen, in southeastern Germany near the border with Austria, and by mid-2014 revamp and expand the existing BD installation at its refining and petrochemical complex in Schwechat, eastern Austria.
OMV said it was not yet specifying the capacities that would be secured by the investment but added that an objective of the investment was to enable the company to account for approximately 6% of European BD production.
BD is increasingly sought by tyre producers that wish to produce high quality tyres, OMV said.
($1 = €0.76)
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