CTO and MTO projects in China may decelerate
Published by Callum O'Reilly,
Senior Editor
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/petrochemicals/29052019/cto-and-mto-projects-in-china-may-decelerate/
You might also like
Reaching new heights
Nikolas Larsen and Nicholas Newlon, Marathon Petroleum Corp., alongside Grant Severyn and Andrew Novotny, BASF Corp., present a case study in which a novel catalyst technology was used to improve the profitability of fluid catalytic cracking units at refineries.