Naphtha, LPG demand up on chem usage, gasoline making comeback

17 February 2014 12:57 Source:ICIS News

LONDON (ICIS)--Naphtha and liquefied petroleum gas (LPG) demand is up on chemical usage, while gasoline is making a “comeback”, a source from a prominent trading company said at an oil conference on Monday.

Naphtha and LPG are feedstocks used in steam crackers to produce petrochemicals.

Speaking at the International Petroleum Week in London, running 17-19 February, the source described gasoline as the fastest growing oil product.

“Just in the last few years refinery investment has been focused on maximising middle distillate make but for the last two years the biggest growth in world demand has been in gasoline,” the speaker said.

DEMAND DEVELOPMENT (million bbl/day)

PRODUCT:

2011

2012

2013

2014

2015

LPG

9.4

9.5

10.0

10.2

10.5

NAPHTHA

6.2

6.2

6.5

6.5

6.6

GASOLINE

22.7

23.0

23.50

23.9

24.3

JET/KEROSENE

6.6

6.6

6.7

6.8

6.9

GASOIL/DIESEL

26.3

26.6

27.0

27.60

28.1

FUEL OIL

8.6

8.4

8.3

8.1

8.0

OTHERS

10.1

10.3

10.1

10.2

10.3

TOTAL

89.8

90.6

91.9

93.3

94.60


“Growth in gasoline has outpaced growth in distillate in the past two years and last year growth in LPG and naphtha combined accounted for more than half of the increase in total demand because of heavy chemical usage,” the source said.

By Cuckoo James