Middle East feedstock advantages continue to support surge in petchem capacity

Feedstock advantages in the Middle East are fueling a powerful and continuing upsurge in ethane-propane cracking for petrochemicals.Petrochemical feedstock costs in energy-importing countries such as the US and Japan are a function of the prevailing price of energy. Middle East feedstock supplies, on the other hand, are more typically priced on long term, low-price contracts.These contracts, and the ethylene cash cost advantage they provide, are leading to national development and progressive petrochemical expansion in energy-exporting nations.Existing ethylene industryTable 1 shows existing ethylene cracking capacity in the Middle East. The majority of that capacity, except for Iran, is ...

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