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Mideast petchem producers to benefit from lower costs
- Middle East: Tuesday, December 11 - 2012 at 04:48
German consulting firm Roland Berger has said petrochemical producers in the Middle East will continue to enjoy considerable cost advantage compared with their counterparts in Southeast Asia, due to easier access to oil reserves and growing refining capacity in the region, Platts has reported. "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," Jaap Kalkman, a partner and 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%."
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