CONDENSATE EAST OF SUEZ: NGL
and its Naphtha Impacts in Asia Pacific & Mideast
Condensate and the Light-End Products Squeeze
By Asia Pacific Energy Consulting
Al Troner, President
—This is the “definitive” report on condensate in the fastest growing, critical regions of the world, Asia Pacific and the Mideast Gulf.
—The study provides a complete guide to optimizing value in future condensate production, utilization, and trade.
—A comprehensive study detailing the fundamentals and drivers in the Middle East Gulf and Asia-Pacific regions.
Some key issues in considering Condensate:
Condensate, one of the two groups defined as Natural Gas Liquids (NGLs), is finally coming of age in world trade, marketing, refining and petrochemicals. Condensate sales are moving from a niche marketing specialty to a mainstream segment of crude and products trade, and nowhere is this more evident than in the Mideast Gulf and Asia Pacific.
The protean nature of condensate allows it to be used in a wide range of sectors: as a refinery slate component; in specialized distillation towers called condensate splitters; in direct feed to ethylene crackers; in gasoline blending and as a substitute for gas in turbine power generation. It can be defined as a base material, a blending component, a feedstock or a boiler feed. Its very flexibility – and the many names and definitions that are common for condensate in the oil industry – have led to some confusion among potential buyers and in a sense that has undervalued this equivalent of light, sweet crude. We believe that condensate will come into its own as a valuable refining and petrochemical feedstock in coming years.
Asia Pacific will be the epicenter for world petrochemical demand growth over the next decade; expanded gas and NGL output in the Mideast Gulf will underpin a ballooning of condensate and condensate-derived naphtha production in that subregion. Asian olefins manufacturers depend on paraffinic naphtha for the vast majority of their feedstock supply. Rising condensate output will have a direct impact on feedstock avails. This will also increase the use of segregated condensate in direct petrochemical feed and expand condensate splitting in both in Asia Pacific and the Mideast Gulf
OTHER KEY DEVELOPMENTS
PRODUCTION
The structural shift to accelerated development of gas reserves has become ever more apparent in recent years, as East of Suez countries seek to transform gas reserves into new base energy supply. New projects mean a sharp and sustained increase in total gas production and in particular marketed gas output, yet increased gas volumes will underpin a continued rise in Natural Gas Liquids (NGL) output. This impacts condensate in particular, which, unlike its Liquefied Petroleum Gas (LPG) counterparts propane and butane, does not require specialized storage and transportation infrastructure for commercial sales.
MARKETING AND TRADE
Condensate trade and marketing was given a substantial boost by the overall strength of base petrochemicals since mid-2006. As naphtha always makes up a majority of the yield derived from condensate, this sector’s strength underpinned a substantial rise in condensate interest – and prices. Refiners too have begun to review condensate purchases as a means to balancing the higher volume of heavy, sour grades that have been available on crude markets.
PETROCHEMICALS
This study details all base petrochemical capacity, olefins and aromatics capacity in the Mideast Gulf and Asia Pacific, current and forecast. The substantial that petrochemicals have on condensate is underlined by the parallel full listing of condensate splitters and petrochemical pre-treatment units for the region.
PRICING
A proliferation of traded grades has helped to broaden the number and range of pricing systems used to market condensate. Traditionally refiners, as buyers, preferred crude linkage, in order to determine condensate price, while petrochemical buyers, above all interested in feedstock values, preferred naphtha-linked pricing. Yet both condensate sellers and buyers have broadened their options and crude-linked and product-linked sales formulas have multiplied.
Flexibility in pricing systems has become a trend among many condensate exporters, with sales adjusted according to sector and geographic region.
There are many who believe that a global condensate market is emerging, which, though small in volume compared to world crude or products trade, should expand rapidly through end-decade.
Biography
Al Troner is President of Asia Pacific Energy Consulting (APEC), a small consulting firm established in 1995 and now based in Houston, with associates in the U.K. and Australia. Since 1984, he has worked in Asia''s energy sector, establishing Dow Jones/Telerate's regional energy services that year and returning to Singapore in 1989 to found and direct Petroleum Intelligence Weekly''s Asia-Pacific bureau. He won the International Association of Energy Economics award for Energy Journalism in 1994, retiring from journalism the following year. From 1987-1989, he was as a research assistant for the energy group of the East West Center. Recent work includes studies on Global Acidic Crude, Asia-Pacific Product Quality, Asia-Pacific and Global LNG, Gasoline Balances in Asia Pacific and East of Suez Condensate. Mr. Troner has worked in the energy industry in the U.S., Europe and the Middle East, as well as in Asia Pacific. Mr. Troner received a BA from the State University of New York at Stony Brook and an MA from the University of Hawaii.
APEC specializes in 'tactical' consulting, focusing on research and analysis that help oil and gas companies identify, analyze and profit from emerging commercial situations. APEC projects center on problem-solving for companies targeting short- and medium-term business concerns, in a timeframe generally of one to five years. As a small independent shop, the company aims to provide tailored, company-specific services, either for regular core clients or on limited projects, targeting emerging business opportunities.
PRODUCT NO: CNDENSATE
| PRICE: | $5,000 US | |
| $1,000 US — (per additional copy) | ||
| $7,000 US — for a multi user Corporate License | ||
Ordering and Information
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Following is the table of contents for this comprehensive report on Condensates in the Middle East and Asia-Pacific.
CONDENSATE EAST OF SUEZ:
NGL and its Naphtha Impacts in Asia Pacific & Mideast
Table of Contents
I. Introduction
- Condensate … as a Paradox
- Production
- Demand
- Balances
- Markets
- Condensate & Its Potential
- Condensate & Its Profitability
II. Parameters of Condensate
- Basic Definitions
- Condensate Characteristics
- Nature of Utilization
- Utilization by Sector: Refining
- Utilization by Sector: Splitting
- Utilization by Sector: Gasoline and Blending
- Utilization by Sector: Petrochemicals Ethylene
- Utilization by Sector: Petrochemicals Aromatics
- Utilization in Power Generation
- Utilization as Field Fuel
- Moving into Mainstream: Developments since the 1990s
III. Overview of Key Developments
- Production
- Demand
- Marketing and Trade
- Pricing
IV. Major Producing Countries
All country markets covered include a supply, utilization and export outlook. Markets detailed include:
- Mideast Gulf
- Saudi Arabia
- Iran
- UAE
- Qatar
- Iraq
- Oman
- Yemen
- South Asia
- India
- Pakistan
- Bangladesh
- Southeast Asia
- Indonesia
- Malaysia
- Thailand
- Brunei
- Vietnam
- Myanmar
- Philippines
- Northeast Asia
- China
- Russian Far East
- Australasia
- Australia
- Papua New Guinea
- New Zealand
V. Condensate Utilization in Importing Countries
- Japan
- South Korea
- Taiwan
- Singapore
- Thailand
VI. Condensate Splitters & Petrochemical Pretreatment Units
- Overview
- The Raison D’Etre for Specialized Condensate Processing
- Splitter Product Outturn
- Naphtha
- Kerosine
- Gas Oil
- Residual
- Condensate Splitter Grouping
- Future Splitter Trends
- Splitters and Future Condensate Prices
VII. Natural Gas, Condensate, Gasoline, Naphtha and LPG Nexus
VIII. Pricing Mechanisms and Future Condensate Prices
IX. Condensate and Gas Developments
X. From Niche to Mainstream International Trade and Markets
XI. Conclusions
Abbreviations Used in This Study
Definitions
Appendices
Base, Low/High Cases — Supply
Base, Low/High Cases — Demand
Following are sample tables of data from the current study.
Supply:
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Demand:
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Exports:
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Imports:
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Condensate Splitters; Petrochemical Pre-treatment
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Legend to Condensate Numbers
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PRODUCT NO: CNDENSATE
| PRICE: | $5,000 US | |
| $1,000 US — (per additional copy) | ||
| $7,000 US — for a multi user Corporate License | ||
Ordering and Information
For additional information:
E-mail: orcinfo@pennwell.com
Phone: 1.918.831.9488
To Order:
Web Site Online Order Form: www.ogjresearch.com
Phone: 1.800.752.9764 or 1.918.831.9421
Fax: 1.877.218.1348 or 1.918.831.9555
E-mail: sales@pennwell.com
