Petrochemical Industry - Technology Trends and Changing Landscape

The demand of ethylene worldwide is closely tied to world GDP growth. This provides enormous opportunity for growth of petrochemical industry on global basis as demand in emerging economies pick up. The competitive environment of petrochemical industry is global in nature. In addition, the cost of production of petrochemicals is highly dependent on feedstock cost. The regions with abundant low cost feedstock have obvious advantage over the regions where the availability of feedstock is limited or closely related to crude oil pricing levels. The development of these facilities is challenging due to high capital intensity.

The petrochemical landscape has become even more complex with new technology trends that make the strategic master planning of these facilities even more challenging. In last decade, China has developed coal based petrochemical facilities and the economics of these facilities is more attractive as compared to crude oil based feedstock. Shale gas related developments in North America are driving the investments in ethane crackers and on-purpose technologies for the production of propylene, butadiene etc. Shale related developments are also providing opportunities for gas to olefin technologies.

This paper will focus on the technology trends that are shaping the petrochemical industry and contribute to the competitiveness of the businesses. The discussion will also highlight the key factors that contribute to successful development of these facilities from early planning stage through operation.