By MORGANE LAPEYRE
Global demand for naphtha will expand faster than for any
other light products through 2020, spurred by rising needs of
the petrochemical industry in Asia, the
Organization of Petroleum Exporting Countries said
Naphtha use in the Asia-Pacific region will grow by 22% to 4.4
million bpd in this period, with China accounting for more than
a third of the increase, OPEC said in its World Oil Outlook
report. Thats double the expected growth in demand for natural
gas liquids, including ethane and propane, to 3.2 million
bpd, the producer group said.
Naphtha is anticipated to be the fastest growing light
product over the forecast period, especially in developing
Asian countries, OPEC said.
A relocation of the petrochemical industry from Western
countries to nations in Asia will have the greatest effect on
Europe, where naphtha and NGLs use will decline by 100,000 bpd
in the period ending in 2020, according to OPEC.
In the US, where fewer than 20% of ethylene plants use naphtha
as feedstock, demand for the fuel will
decline marginally as rising supplies of shale gas
will sustain the production of comparatively cheap ethane and
propane, OPEC said.
In the Middle East, where petrochemical producers have used
mainly ethane and propane in making ethylene, new refinery and chemical plants will
start using naphtha as a feedstock, the group said.
Naphtha demand is projected to double to 200,000 bpd,
while demand for ethane, propane and other NGLs will rise more
slowly by 18% to 1.3 million bpd, according to the