Last Updated: April 5, 2018
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With “Creating Value through Collaboration” as its theme, the Asia Petrochemical Industry Conference (APIC) 2018 puts the spotlight on the imperative of collaboration and cooperation in paving the way for a prosperous and robust petrochemical industry.


Rising optimism in the oil & gas industry

With 2017 deemed by many as the year of recovery, 2018 brings about a sense of optimism as the oil and gas industry continues its slow and steady recovery from the 2014 downturn. Global oil prices are rising gradually from around $30 per barrel in early 2016 to around $53 per barrel in 2017. There is also an increase in upstream and downstream activities which is a positive indicator of the health of the industry.

Robust global economic growth has led to a steady increase in oil and gas demand. In its latest report, International Energy Agency (IEA) forecasted that global oil demand will rise from 97.8 million barrels per day (bpd) to 104.7 million bpd from 2018 to 2023 with China and India contributing half of the increase in demand.

Non-OPEC countries is forecasted to dominate the global oil supply contributing 59.26 million bpd of crude oil this year, with the US contributing the largest supply growth amounting to 1.4 million bpd for 2018. Apart from the surging output from the US, rising production from Canada, Brazil and Norway is expected to support and drive global demand, while the Middle East continues to remain as Asia’s biggest supplier.


Asia as the key driver of global petrochemical industry

Asia’s robust economic growth supported by megatrends; rapid urbanisation, growing population and rising middle class income will lead to higher demand of petrochemicals. This will increase the potential for continuous growth of the industry in the region.

One of the bright stars in Asia is China. Availability of coal resources and imported LPG from the US, and the development of integrated refinery and petrochemical complexes have made the availability of feedstock for the development of the petrochemical industry.

India is also expanding its petrochemical capacities and increasing its flexibility in petrochemical production. The government is planning to develop petrochemical complexes around India to meet the increasing demand for polymers and speciality chemicals across the diverse industrial segments. In 2017, India’s Reliance Industries Limited (RIL) has successfully commissioned the world’s largest ethane importing plant and has now begun to import ethane from the US for its crackers in Dahej and Hazira.

Growing capacity expansion in the US 

The shale revolution brought about a robust petrochemical capacity expansion in the US. According to an analysis by Independent Chemical Information Service (ICIS) eight new ethane crackers are expected to commence production from 2017 to 2018, producing a total of 9.2 million tonnes/year of ethylene capacity.

The US polyethylene capacity is projected to rise by 6.5 million tonnes/year, accounting for about 42% of global polyethylene capacity expansion up till 2020. The US polyethylene production will mostly be meant for export to key regions such as Latin America and Europe. The increased expansion has opened arbitrage opportunities to Asia, competing with the regional producers as well as producers from the Middle East.


The need for collaboration for the sustainability of the industry 

With intensifying competition from other regions, collaboration plays a prominent role in enhancing the robustness of the Asian petrochemical industry. Strong cooperation between manufacturer and consumer is needed to develop new markets for differentiated products. The focus on creating high-value specialty chemicals which are customised to cater for the niche market will help propel the industry further in positioning the Asian petrochemical producers as solution providers.

Akbar Md Thayoob, President, Malaysian Petrochemicals Association (MPA) said, Today, Petrochemicals are regarded as the key engine of growth as we move into the future. Shaped by the megatrends of urbanisation, ageing population, rising middle income, energy efficiency, just to name a few. Against this backdrop, there is a need for the petrochemicals fraternity to come together and collaborate to offer sustainable solutions demanded by these megatrends.”


Malaysia’s petrochemical industry landscape

Malaysia’s petrochemical industry began in the early 1990s with the development of three major petrochemical facilities strategically located in Gebeng, Kertih and Pasir Gudang. Since then, Malaysia has been among the key petrochemical players in the region with a wide range of petrochemicals being produced and exported from the country such as olefins, aromatics, ethylene oxides and glycols, among many others. These world-scale plants have also contributed significantly to the production of the local plastic processing activities in the country by providing a steady supply of feedstock material for the plastic industry.

PETRONAS’ largest downstream project, Pengerang Integrated Complex (PIC), is currently on track for overall start up by early 2019. This bold move by PETRONAS is expected to push the Malaysian Oil and Gas downstream sector into a new frontier of technology and economic development.  During the construction period, PIC employed up to 60,000 workers and created spin-off from economic activities to its surrounding areas. Its proximity to the world’s busiest shipping lane and international trading hub makes it the most strategic regional downstream hub.

The Malaysian government’s support in providing a conducive ecosystem has also helped the petrochemical industry to thrive in the country. This includes the development of infrastructure and offering of incentives to attract foreign companies to invest in Malaysia and boost local manufacturing sector activities.


APIC 2018: Creating Value through Collaboration

Against the backdrop of these opportunities, APIC 2018 will gather key business players, leading market analysts and industry experts in Kuala Lumpur from 9th to 10th May to provide insights and critical analysis from across the chemical value chain to enhance the growth of the industry.

Notable speakers for the event includes Dave Witte, Senior Vice President, Division Head – Energy & Chemicals, IHS Markit, Clive Gibson, Vice President, Asia, Energy & Chemicals Advisory, Nexant, Vipul S Shah, COO – Petrochemicals, Reliance Industries Ltd and Dr Andrea Frenzel, President, South & East Asia, ASEAN, Australia and New Zealand, BASF.


For more information about Asia’s most premier petrochemical industry event, APIC 2018, visit www.apic2018.org.my

APIC Petrochemical Refining Malaysia
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Your Weekly Update: 2 - 6 December 2019

Market Watch  

Headline crude prices for the week beginning 2 December 2019 – Brent: US$61/b; WTI: US$55/b

  • As the posturing begins ahead of the OPEC meeting in Vienna, crude oil prices mounted gains as several OPEC members signalled that the club was prepared to deepen cuts to the existing supply deal
  • Data showing that the Chinese manufacturing sector growth jumped unexpectedly in November, although the see-saw messages regarding a potential US-China trade deal continue to cloud the market… especially given recent US legislation to sanction China for its policies in Hong Kong and against its own Uighur community
  • The discussion in Vienna by the OPEC nations and the wider OPEC+ club revolved around adherence and implementation of the current supply deal, focusing on cajoling errant members – ie. Russia – into meeting their quotas, in exchange for a deeper cut to prop up prices
  • This resulted in a decision to cut output by a further 500,000 b/d in Q1 2020 – formalising the supply reductions already in place and subject to all members of OPEC+ implementing all of their pledged curbs; further details on the new plan are expected to be released
  • OPEC’s outlook on the crude market in 2020 has changed slightly, as it expects that the US shale revolution will slow down considerably in the next two years; however, it also warns of additional output coming from non-OPEC members, including Norway and Brazil, the latter being a possible new OPEC member
  • Meanwhile, in the US, the chronic decline in the active rig count continues, with the Baker Hughes index falling by a net 1 last week – the loss of 3 gas rigs offset by the gain of two gas rigs – the 13th decrease in the past 15 weeks, with the active count down 274 y-o-y
  • The decision spinning out of OPEC’s Vienna meeting is broadly positive – not a great shot in the arm, but not detrimental to the current market; as such we see crude prices trading in their current range of US$62-64/b for Brent and US$57-60/b for WTI


Headlines of the week

Upstream

  • Norway’s Equinor has announced that it will scale back exploration activities in frontier areas in the Barents Sea, shedding risk to focus on drilling near existing discoveries such as Johan Castberg and Wisting, and therefore decreasing the chance of discovering a new Arctic oil region
  • Cairn Energy will be exiting Norway as it sells its entire stake in Capricorn Norge AS to Solveig Gas Norway AS for US$100 million
  • Libya’s El Feel – a key field operated by Eni and Libya’s National Oil Corp near the giant Sharara field – has restarted production at 74,000 b/d after clashing between rival fighting factions forced it to shut down
  • Woodside’s development plan for Phase 1 of the offshore Sangomar field in Senegal – targeting production of 100,000 b/d via FPSO – has been submitted to the Senegalese government, paving the way for FID
  • Spurred on by success, ExxonMobil is adding a fifth drillship in Guyana as it probes a new ultra-deepwater prospect just north of the Stabroek block
  • Equatorial Guinea’s latest licensing round was a boon to Lukoil, which walked away with the prime EG-27 block containing the Fortuna gas discovery, while US player Vaalco Energy won 4 blocks in the onshore Rio Muni basin

Midstream/Downstream

  • Pertamina has purchased US crude for the first time in a long while, inking a shipment for 950,000 barrels of US WTI crude with Total to be delivered over 1H 2020 to the Cilacap refinery, pivoting away from Middle East grades
  • Trafigura is looking to sell off its fuel station network in Australia – operated through its retail arm Puma Energy – as continued losses in the space since it entered the market in 2013 for US$850 million pile up
  • Construction on BASF’s giant US$10 billion integrated petrochemicals project in Zhanjiang, Guangdong has begun, with the first phase to be launched in 2022 as the first wholly foreign-owned chemicals complex in China
  • Equatorial Guinea has announced plans to build two new oil refineries – each with a processing capacity of 30-40,000 b/d using local Zafiro crude – along with other projects including a methanol-to-gasoline plant and LNG expansion
  • Bosnia’s sole refinery – the 25,000 b/d Brod site – should be operational by mid-2020, following a major overhaul that began in January 2019

Natural Gas/LNG

  • Algerian piped natural gas exports to Europe have been squeezed out by boosted supply of LNG from Australia and the US, as well as piped gas from Russia, which has forced Sonatrach to turn more of its gas into LNG sold by spot
  • Gunvor has agreed to market LNG from the Commonwealth LNG project in Louisiana internationally, as well as double its own purchases from the project to as much as 3 million tpa once the project begins operations in 2024
  • Norway’s BW Offshore insist that its Kudu natural gas project in Namibia is ‘alive and well’, with talks ongoing with the government two years after the FPSO specialist acquired a 56% stake in the license from NAMCOR
  • ExxonMobil is reportedly looking to sell its 50% stake in the Neptun Deep gas project in the Black Sea offshore Romania – the location of its major Domino discovery – for some US$250 million as it continues on a major asset sale
  • Petronas is sending its second FLNG unit – the PFLNG Dua – to the Rotan gas field in Sabah, beginning liquefaction operations there by February
December, 06 2019
Global Small-Scale LNG Market to Reach 48.3 Million Tons per Annum by 2022 : Energy cost advantage & Environmental Benefits are Major Drivers

The Global Small-Scale LNG Market is projected to grow from 30.8 MTPA in 2016 to 48.3 MTPA by 2022, at a CAGR of 6.7% between 2017 and 2022. The small-scale LNG market across the globe is driven by their increasing LNG demand from remote locations by applications, such as industrial & power, and the ability to transport LNG over long distances without the need for heavy investment such as pipelines. By terminal type, regasification terminal is expected to grow at a highest CAGR between 2017 and 2022. The increasing demand for LNG from the remote locations and global commoditization of LNG are some of the major factors that are driving the demand for small-scale LNG in this segment.

Downlolad PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=226707057

The Linde Group (Germany), Wärtsilä (Finland), Honeywell International Inc. (U.S.), General Electric (U.S.), and Engie (France), among others are the leading companies operating in the small-scale LNG market. These companies are expected to account for significant shares of the small-scale LNG market in the near future.  

Critical questions the report answers:

Growth Drivers are : 

  • Energy cost advantage of LNG over alternate energy sources for end users
  • Environmental benefits
  • Fiscal regime and subsidies

small-scale-lng-market-226707057

Energy cost advantage of LNG over alternate energy sources for end-users

Heavy duty transport companies save approximately 30% on fuel costs on LNG-fueled trucks, compared to diesel fueled trucks, and produce 30% lower emissions. Air pollution from diesel engines is one of the biggest concerns, especially in areas that struggle to meet air-quality standards. On the other hand, natural gas causes complete combustion and fewer emissions than diesel. It is estimated that increasing environmental concerns from the utilization of diesel vehicles is likely to increase the adoption of green fuel technologies such as natural gas. In the case of electric power generation, natural gas engines below 150 KW are more cost effective than oil fueled engines. Fuel cost is one of the major cost for road transportation, which is strongly subject to excise taxation. Typically, an LNG-fueled Volvo FM truck can travel up to 600 km with LNG. With an additional 150 litres of diesel, it can travel up to 1,000 km without refuelling. Thus, reducing the cost of travel. With additional LNG liquefaction capacity expected to come online in the next few years, an oversupply of LNG is expected, which will drive the price of LNG further lower. Considering all these factors, both developed and developing countries are undertaking feasibility studies to recognize the techno-economics of shifting their economies from diesel to natural gas. Therefore, the cheap price of small-scla LNG over others alterantive fuels will drive the growth during the forecast period. 

Small-scale LNG terminals are regarded as facilities, including liquefaction and regasification terminals, with a capacity of less than 1 million tons per annum (MTPA) within the scope of this study. It includes the LNG produced from small-scale liquefaction terminals and regasified at small-scale regasification terminals for catering to applications such as LNG-fueled heavy-duty transport, LNG-fueled ships, and industrial & power generation. 

North America small-scale LNG market is projected to grow at the highest CAGR during the forecast period.

The North America small-scale LNG market is projected to grow at the highest CAGR during the forecast period. In North America, most of the small-scale LNG demand in industrial & power applications is met through peak shaving facilities. The peak shaving facilities are used to meet adequate supply of LNG to address the peak demand. In 2015, there were more than 100 peak shaving facilities in the U.S., among which one-half of the peak shaving facilities were located in the Northeast, while a quarter of them were located in the Midwest. Currently, the U.S. has among the highest number of peak shaving plants. However, less than 10% of them are available for any other use due to the current electricity demand. The commissioning of small-scale liquefaction plants can expand the peak shaving capacities in the region.

Speak to Analyst @ https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=226707057

Major Market Developments: 

  • In December 2016, SkanGas AS signed an agreement with Statoil ASA, an oil and gas company in Norway for the reloading of small-scale LNG at Klaipeda LNG Terminal in Lithuania
  • In November 2016, Wärtsilä signed a Memorandum of Understanding (MoU) with ENGIE, a French multinational company to develop services and solutions in the small-scale LNG sector. The agreement includes LNG distribution in remote areas and islands, LNG for ships, small-scale LNG and bio-liquefaction, and LNG to power stations
  • In October 2016, GAZPROM announced to develop a program for a small-scale LNG production, which includes a list of gas distribution stations and liquefaction technologies for LNG production. The program involves the construction of mobile LNG filling stations and cryogenic filling facilities.
  • In June 2014, The Linde Group developed a small-scale LNG technology namely StarLNG™ for the integration into natural gas liquids (NGL) plants. Some of the benefits of this technology includes zero impact on the reliability of the NGL plant production and monetizing the stream of the residue gas through small-scale LNG.

Get 10% FREE Customization on this Study @ https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=226707057

December, 05 2019
Cryogenic Tanks Market - Global Forecast to 2024

The report "Cryogenic Tanks Market by Raw Material (Steel, Nickel Alloy), Cryogenic Liquid (Liquid Nitrogen, LNG), Application (Storage, Transportation), End-use Industry (Metal Processing, Energy Generation, Electronics), and Region - Global Forecast to 2024" The global cryogenic tanks market size is projected to grow from USD 6.2 billion in 2019 and expected to reach USD 8.1 billion by 2024, at a CAGR of 5.5%.

Browse 121 market data Tables and 36 Figures spread through 147 Pages and in-depth TOC on "Cryogenic Tanks Market by Raw Material (Steel, Nickel Alloy), Cryogenic Liquid (Liquid Nitrogen, LNG), Application (Storage, Transportation), End-use Industry (Metal Processing, Energy Generation, Electronics), and Region - Global Forecast to 2024"
View detailed Table of Content here - https://www.marketsandmarkets.com/Market-Reports/cryogenic-tanks-market-26811967.html

The global industry for cryogenic tanks is driven primarily by the increasing demand for LNG. An increase in infrastructure spending, space applications for cryogenic technologies, and cryogenic energy storage systems represent promising growth opportunities for the market. Improving healthcare services in the developing economies is boosting the cryogenic tanks market.

The steel segment is estimated to lead the cryogenic tanks market, by raw material, during the forecast period.

Steel is primarily used in the manufacturing of cryogenic tanks. Most of the materials are ductile at room temperature and abruptly lose their ductility when a given threshold is exceeded. They then become brittle even at relatively low temperatures. The austenitic stainless steel is majorly used for working in the low-temperature range. Carbon and alloy grade steels used for low-temperature service are required to provide high strength, ductility, and toughness in vehicles, vessels, and structures that must be used at –49°F and lower. These factors are contributing to the growth in demand for steel for the manufacturing of cryogenic tanks.

Liquid Nitrogen is the fastest-growing cryogenic liquid segment of the cryogenic tanks market.

Liquid nitrogen is primarily used in metal processing, food & beverage, electronics, and healthcare industries. The steel manufacturing industry is one of the major consumers of nitrogen. Nitrogen is used in the food & beverage industry for food preservation and packaging applications. The use of liquid nitrogen in this industry enables cost savings during storage and transportation and improves food quality. Liquid nitrogen is used to cool normally soft or heat-sensitive materials, such as plastics, tires, and certain metals. The increasing demand for liquid nitrogen from metal processing, food, and medical industries is expected to drive the market in this segment.

Metal processing is expected to lead the end-use industry segment for cryogenic tanks market during the forecast period.

Metal-processing industry was the largest end-use industry for the cryogenic tanks industry. Cryogenic tanks are increasingly being used in the metal processing industry, especially steel the industry. Huge quantities of nitrogen and other industrial gases are used during the steel manufacturing process. Nitrogen is also known to be largest consumed gas in the industry. It is used as a high-pressure gas for laser cutting of steel and metal. The inert properties of nitrogen facilitates its use as a blanketing gas. Some gases, including hydrogen and oxygen, are also used in the metal processing industry.   Cryogenic tanks are commonly used in the storage and transportation of these gases in manufacturing plants, which drives the market demand.

High economic growth rate and growing metal processing and energy generation industries in China, Australia, and India are projected to lead the cryogenic tanks market in APAC during the forecast period.

APAC is the fastest-growing market, in terms of both production and demand. Higher domestic demand, easy availability of raw materials, and low-cost labor make APAC the most preferred destination for the manufacturers of cryogenic tanks. The cryogenic tanks market in India, China, and Australia is expected to witness significant growth during the forecast period. The market is primarily driven by the demand from the energy & power sector. APAC is emerging as a leading consumer of cryogenic tanks, owing to the increasing demand from domestic as well as international markets.

The key players in cryogenic tanks market are Chart Industries (US), Cryofab (US), INOX India (India), Linde PLC (UK), Air Products (US), Cryolor (France), Air Water (Japan), Wessington Cryogenics (UK), FIBA Technologies (US), and ISISAN (Turkey). These players have established a strong foothold in the market by adopting strategies, such as expansion, new product launch, and merger & acquisition.

Don’t miss out on business opportunities in Cryogenic Tanks Market. Speak to our analyst and gain crucial industry insights that will help your business grow.

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December, 05 2019