Economics
4 technologies that will disrupt the petrochemical industry
As an extraction technology, fracking is capable of extracting a large quantity of natural gas, which can, in turn, be made into petrochemical raw materials.
Technological advances and scientific innovations will play a great role in the years to come, and the petrochemical industry is no exception
As an extraction technology, fracking is capable of extracting a large quantity of natural gas, which can, in turn, be made into petrochemical raw materials.
Fracking is an extraction technique that combines two technologies, hydraulic fracturing and horizontal drilling. The technique involves pressurized injection of chemicals and sand into the ground.
The process causes fractures in the rock, through which shale gas and shale oil are released.
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In the US, fracking technology has lowered the cost of shale gas among ethylene producers. This is because shale gas extracted through this method has become available in large supply and at a lower cost, leading to an expansion in ethylene and gas cracker production. The EIA estimates that ethane cracker production in the US will grow by 16.3% per annum between 2016 and 2018.
The Gas Cracker method can produce a proportion of 82% ethylene, whereas the Naphtha Cracker method can only produce 30% ethylene. Therefore, this new technology yields a higher ratio of ethylene. As for propylene, which is another important petrochemical precursor, the Gas Cracker method can produce a proportion of 13% propylene. By contrast, the Naphtha Cracker method can producer a higher proportion of 15% propylene. As a result of the lower proportion, the market’s demand for propylene currently does not meet supply.
On-purpose precursor-sourcing technology will help alleviate the problem of shortage in petrochemical precursors.
While the US has shale gas as a main petrochemical precursor, China uses coal as a source of petrochemical production to meet domestic demand. On-purpose technology has been introduced to coal extraction to produce a petrochemical precursor called coal-to-olefin (CTO) and methanol-to-olefin (MTO). Moreover, On-purpose Technology can address the issue of low-proportion propylene that results from the Gas Cracker method. An on-purpose technology called propane dehydrogenation (PDH) uses propane to pull out hydrogen atoms in order to more effectively extract propylene as an important petrochemical precursor.
The aforementioned technologies will present challenges to the petrochemical industry in competitiveness between international players.
Competitors in the US have advantage in the lower production costs of both ethylene and propylene as a result of fracking technologies for shale gas and PDH. In Asia, particularly in China, the CTO and MTO technologies remain expensive. However, if China succeeds in lowering their production costs in the future it will become a competitive player, thus presenting a challenge to other players in Asia, most of which are Naphtha-based producers, such as companies in South Korea, Japan, and Taiwan. Therefore, exports to China may not expand as fast as before. In this regard, previous exporters will face ruthless…
Author: Nattanan Apinunwattanakul
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BANGKOK (NNT) – The government’s 50:50 co-pay campaign expiring on 31st March may not be getting an immediate campaign extension. The Minister of Finance says campaign evaluation is needed to improve future campaigns.
The Minister of Finance Arkhom Termpittayapaisith today announced the government may not be able to reach a conclusion on the extension of the 50:50 co-pay campaign in time for the current 31st March campaign end date, as evaluations are needed to better improve the campaign.
Originally introduced last year, the 50:50 campaign is a financial aid campaign for people impacted by the COVID-19 pandemic, in which the government subsidizes up to half the price of purchases at participating stores, with a daily cap on the subsidy amount of 150 baht, and a 3,500 baht per person subsidy limit over the entire campaign.
The campaign has already been extended once, with the current end date set for 31st March.
The Finance Minister said that payout campaigns for the general public are still valid in this period, allowing time for the 50:50 campaign to be assessed, and to address reports of fraud at some participating stores.
The Fiscal Police Office Director General and the Ministry of Finance Spokesperson Kulaya Tantitemit, said today that a bigger quota could be offered in Phase 3 of the 50:50 campaign beyond the 15 million people enrolled in the first two phases, while existing participants will need to confirm their identity if they want to participate in Phase 3, without the need to fill out the registration form.
Mrs Kulaya said the campaign will still be funded by emergency loan credit allocated for pandemic compensation, which still has about 200 billion baht available as of today.
BANGKOK (NNT) – The Customs Department is seeking ways to reduce the impact of the exemption on import tax and value-added tax (VAT) for imported goods worth up to 1,500 baht, as such measures are hurting small and medium-sized enterprises (SMEs).
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