Middle Eastern petrochemical producers will continue to enjoy considerable cost advantage compared with their counterparts in Southeast Asia even as a scarcity of gas forces them to shift to other feedstocks, Jaap Kalkman, a partner at German consulting firm Roland Berger, has been reported by Platts.
"The energy cost [expenditure on power] of a naphtha cracker in the Middle East will be about 50% lower than that of a naphtha-fed cracker in Singapore and Japan," Kalkman, who is also Head of Energy and Chemicals for the Middle East, said. "The feedstock cost for a Middle East naphtha-based producer will be lower as compared to an Asian producer, in the range of 1-10%." He attributed this to easier access to oil reserves and growing refining capacity in the region.
11-Dec-12 
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