AFX Asia (Focus): China to become a net naphtha importer this year – report: “The new demand will be met mostly by domestic refineries. But Royal Dutch/Shell's local ethylene venture -- CNOOC and Shell Petrochemicals Co Ltd -- is slated to begin operations in the fourth quarter this year…” (ShellNews.net) 3 March 05
Mar 03, 2005
BEIJING (AFX) - China will this year become a net importer of naphtha, a petrochemical feedstock used to make ethylene, due to a rapid increase in the country's ethylene capacity, Sinopecnews said.
China will add annual ethylene production capacity of 2.3 mln metric tons by the end of 2006, which in turn creates 7.2 mln tons of demand for naphtha, the official industry website said, citing sources.
The new demand will be met mostly by domestic refineries. But Royal Dutch/Shell's local ethylene venture -- CNOOC and Shell Petrochemicals Co Ltd -- is slated to begin operations in the fourth quarter this year, and will require some 2.4 mln tons of imported naphtha annually.
The venture will make possible long term supply contracts with overseas suppliers, including those from Australia, and purchase naptha on the international spot market, it said.
China has been a net naphtha exporter over the past several years, with exports totaling 870,000 tons in 2003, Sinopecnews added, without providing comparative figures.