Skip to main content

CTO and MTO projects in China may decelerate

Published by
Hydrocarbon Engineering,


New coal-to-olefins (CTO)/methanol-to-olefins (MTO) projects in China are expected to face the risk of delay due to the government’s intensified efforts to reduce pollution by reducing coal usage and changing crude oil and coal prices, according to GlobalData.

Abundant availability has made coal the low-cost advantageous feedstock for petrochemical production in China. The share of coal-based petrochemical production in total production has been on the growth trajectory in the country since 2010. It has gradually increased from 3% in 2010 to approximately 16% in 2018.

Dayanand Kharade, Oil & Gas Analyst at GlobalData, said: “With declining crude oil prices from mid-2014, coal started losing its low-cost advantage as feedstock for petrochemical production, which may prompt producers to turn back to dominant feedstock naphtha.

“With China working actively to meet its clean energy goals to reduce carbon emission and reducing the usage of coal, the upcoming CTO/MTO projects timeline are likely to be affected. The cost of environmental protection is likely to be one of the key factors for dragging down the competitiveness of CTO projects.”

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/29052019/cto-and-mto-projects-in-china-may-decelerate/

You might also like

Catalysts 2019

Catalysts 2019

Catalysts 2019 is an online conference for professionals in the downstream sector. Since this is a completely virtual conference, you can join us from anywhere in the world, absolutely free. Register for free today »

 
 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Downstream news