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Preparing for a changing petrochemical supply landscape

Since 2008, it has been apparent that the petrochemical supply landscape will be changing worldwide as feedstocks and technologies evolve.


This paper explores some of the changes taking place in the ethylene (the largest volume olefin) and aromatics arenas, but there will be an impact on methanol, propylene, ammonia and other chemicals as well. This means that across the board, petrochemical companies will need to think about adopting new business models for this shifting supply landscape.


Download PDFRead the study. [PDF 1.33MB]


The supply landscape is changing on several fronts, starting with North America. The use of unconventional technologies to develop shale resources is increasing gas availability and reducing gas prices significantly in this region. In addition, the shift of North American refineries to more paraffinic crudes is causing aromatics to be more expensive.

Meanwhile, the commercialization of coal-to-olefins (CTO) and methanol-to-olefins (MTO) technologies in China is adding a new olefin supply source. And in the Middle East, we are seeing limits to future gas supplies, as well as a push toward refinery-based chemicals.

These factors will affect each petrochemical chain differently.