Feedstock Flexibility for Optimal Profitability

Condensate output East of Suez the Middle East, Russian Far East and Asia Pacific will more than triple between 2003 and 2013 to almost 6 million barrels per day (bpd) ~ Source : www.gulfnews.com, 2006

KPC aims to almost triple the premium for April 2007-March 2008 term naphtha supplies this week for Asian buyer.
~Source : www.chemnet.com, Feb 08 2007

Not only are petrochemical players expanding their plants in Asia, players in the Middle East are also announcing cracker expansions, demand for petrochemical feedstock is hence expected to increase. Oil prices are also seen rising towards a high of US$62 on 8th March (Source: www.gulfnews.com), how would the dynamics work out as feedstock tighten amid rising oil prices and increasing demand ?

In order to optimize their cost of production, petrochemical players have been evaluating and developing alternative feedstock options eg. Coal, LNG, LPG, GTL. One alternative route that has attracted much interest is coal based petrochemicals. Sino Biopharmaceutical has announced plans to build a coal to olefin plant in China (Source: Xinhua , Sept 2006) following other companies like XinAo Group, Shenhua Group and Ningxia Coal Group. How is this changing the face of petrochemical production in Asia?

Producers would also need to evaluate the attractiveness of cracking LPG and how LNG investments in Asia may impact feedstock balance. Though not all the options are viable due to resource limitations, petrochemical players could still seek other ways to help improve their margins. Players can look at financial instruments to hedge their feedstock costs. Advances in aromatic technology can also help players increase their yield and productivity. How can petchem players sustain their margins by managing their shipping and logistic strategies more effectively? 

Explore these and more at CMT’s 6th Asia/China Petrochemical Feedstock Markets Conference on 14-15 May and hear from the industry’s key players about the latest developments in the petrochemical industry. 

Key Sessions :
• Condensate and Naphtha developments
• Outlook of China’s Refining Capacity
• Alternative feedstock options : GTL Naphtha, Coal, LNG, LPG
• Naphtha Futures Hedging : How does it work ?
• Petrochemical Expansion Updates in Asia
• Strategies in Optimising petrochemical Complex
• Logistics and Shipping Challenges 

Sign up with your team at www.cmtevents.com or email vynn at vynn@cmtsp.com.sg for more queries. 

Who Should Attend
• Production/Product /Marketing/ Commericial/Sales Directors, Managers & Executives fromLeading Oil and Petrochemical Companies
• Coal & Natural Gas Producers
• Refinery Operators
• Additives & Catalyst Companies
• Industry Consultants
• Oil/Gas Traders
• Project Financiers
• Feedstock Technology Licensors