Propylene expected to more than double its output by 2017
Houston, 2 July 2014
Propylene production is undergoing a dramatic shift, with the US expected to become a net exporter by 2017, according to a new study released by global energy news and price reporting organization Argus. The 2014 Argus DeWitt Propylene Annual provides an in-depth overview and analysis of the dynamic changes expected in the propylene market.
Rising production of propane from US shale formations, along with shifts to heavier feedstocks in the Middle East and lighter feeds in Europe are affecting propylene supply more than any other product. No product in the petrochemical chain is expected to undergo more changes in upstream sourcing, production and economics over the next few years than propylene.
US and Chinese producers in particular are investing heavily in propane dehydrogenation, or PDH, technology, which converts propane into propylene to fill the supply gap caused by slower growth in ethylene cracker capacity and lighter cracker feedstocks output. Argus DeWitt expects global propylene demand to lag behind capacity growth, creating a global surplus, assuming all planned capacity is built. With propylene as the base for many everyday products such as plastics, automotive parts and synthetic fibers for clothing, this signals an important trend for many businesses.
“The propylene industry has gone from stagnation five years ago to continuous expansion for the foreseeable future,” Argus Media chairman and chief executive Adrian Binks said. “The 2014 Argus DeWitt Propylene Annual will be a valuable resource for those affected by the changing dynamics of the propylene market.”
Olefins, such as propylene, are the largest and most liquid petrochemicals markets in the world.
Argus, through its purchases of DeWitt and Jim Jordan & Associates (JJ&A), offers a full range of international petrochemical services. Argus DeWitt reports cover global trade and pricing for aromatics, olefins, butadiene, methanol, MTBE, hydrocarbon resins and other petrochemicals. Argus DeWitt publishes nearly 200 price references, which are widely used in index pricing and for analytical purposes. In addition to reports, Argus DeWitt provides consulting services and publishes multi-client studies.
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About Argus Media
Argus is an independent media organization with over 600 full time staff. It is headquartered in London and has offices in each of the world’s principal commodity centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyze market and industry trends. More than half of Argus employees are commodity journalists who specialize in reporting news and price information relating to physical energy and related commodity markets. They operate according to a rigorous Editorial Code of Conduct and a compliance and ethics policy that align with best journalistic practice, including the avoidance of conflicts of interest.
Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical, metals and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies use Argus information for analysis and planning purposes.
Argus has 19 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centers of the commodity industries. Argus was founded in 1970 and is a privately held UK-registered company.
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