A new report from Ken Research has said that the naphtha supply and demand chain in Egypt affects countries around the world as the nation exports 100% of its domestic naphtha production. There are however, many factors that can impact naphtha production and exports due to the diversifying product portfolio obtained from naphtha. These include:
- Oil production.
- Prices and refinery demand.
- Petrochemicals and the chemical industry.
The naphtha market in the Middle East has seen growth at a CAGR of 7.7% between 2007 and 2013 and Egypt is the fifth largest naphtha producer in the Middle East region. The country produces naphtha only from its refineries and production has plummeted since 2007 from 2.8 million tpy to a figure in the thousands of tpy in 2013. The main reason behind this, according to research is that Egypt has moved its attention to low cost feedstocks such as ethane. However, naphtha is creeping back slowly an the Egyptian General Petroleum Corporation (EGPC) is the leading producer in the country.
It is predicted that naphtha production in the country is going to increase dramatically from the 2013 levels by 2018 due to the naphtha crackers that are being developed in the country. Due to this, exports of naphtha are expected to see similar growth to 2018.
Adapted from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/08092014/naphtha-market-in-egypt/