Iran, Qatar and Australia plan to increase production of natural gas, raising supply of condensate by 7.2% pa until 2010. Condensate is a by-product valued because of its suitability as a raw material to be processed into fuels and will meet higher demand for gasoline and diesel in a growing global economy. Condensate, a type of light oil produced in association with gas, can yield as much as 60% of light distillates such as naphtha and gasoline, doubling gasoline yield of most crude.
Asian petrochemical makers that rely mostly on the Middle East region for its 30 mln metric tpa of naphtha import each year, are facing a shortage of naphtha. The supply deficit may widen to 34 mln tons next year, as ethylene producers plan to boost capacities to tap China's demand for chemicals. Petrochemical makers including Formosa Petrochemical Corp and Mitsui Chemicals Inc will benefit from an increase in condensate production.
Royal Dutch Shell Plc, Iran's National Petrochemical Corp and SK Corp., are among companies that started condensate-processing plants in Asia this year to tap the region's surging demand for petrochemicals.
Supply of condensate in Iran will increase as the country develops the South Pars field, the world's biggest deposit of natural gas, where it has invited international contractors to develop several phases.
Shell's Pearl gas-to-liquids project, which will convert Qatar's North Field natural gas into motor fuels, will produce 120,000 bpd of condensate by the end of this decade.
01-Nov-06 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}