Issue 21/2021 - Global Chemicals Quick Facts

Europe's energy crisis highlights Canada's energy and petrochemical advantages

Bob Masterson, CEO and president of the Canadian Chemical Industry Association (CIAC), said in an interview with Axis that the soaring natural gas prices in Europe and the resulting cuts in chemical production highlighted the "huge advantage" of Canadian petrochemical production, particularly in Alberta
.
"Canada has a lot of natural gas, and the prices of these liquid-rich natural gases are much lower than the rest of the world, which puts Canadian chemical production in a good position
over European competitors," Masterson said.
In addition, he noted that over the past 10 years, demand for Canadian natural gas has been significantly reduced due to a significant increase in natural gas production due to the shale gas revolution in the United States, a major customer, resulting in a significant reduction in natural gas capacity
in Canada.

A number of chemical companies are focusing on low-carbon technologies

Recently, a number of chemical companies around the world, including SABIC, Air Liquide, BASF, Clariant, Covestro, Dow Chemical, Mitsubishi Chemical, DSM, Sieber and Solvay, announced the launch of the Alliance Low Carbon Technology Cooperation Innovation Program (LCET).

The alliance agreed to transform the existing LCET into an independent company, and companies within the LCET will participate in the investment of the new company to promote the accelerated development and upgrading
of technologies to reduce greenhouse gas emissions in the chemical industry.
"As the LCET program enters a critical implementation phase, it will demonstrate that our industry can achieve breakthrough innovations
through collaboration," SABIC said.
By working together, we will accelerate the circular carbon economy towards carbon
neutrality.
According to LCET, chemical manufacturing currently accounts for about 5% of total global greenhouse gas emissions, and global demand for chemicals is expected to quadruple
by 2050.

Natural gas shortages have forced power plants to switch to oil to push up demand

The International Energy Agency (IEA) says soaring gas and coal prices are forcing power generation companies and manufacturers to switch to oil, which could add 500,000 barrels
a day to average global oil demand.
The IEA's October monthly market report raised its global oil demand forecast by 170,000 b/d this year and 210,000 b/d
next year.
However, the IEA added that the cumulative effects of the ongoing energy crisis could add 500,000 b/d
to oil demand from September to the first quarter of next year.
This means that global crude oil demand will exceed pre-pandemic levels
next year.
"The ongoing global economic recovery has caused severe shortages in the supply of natural gas, liquefied natural gas and coal, triggered a sharp rise in the price of energy supply, and is triggering a large-scale shift to petroleum products and the direct use of crude oil for power generation
," the IEA said in its report.
Power plants, fertilizer producers, manufacturing operations and refineries have all been affected
.
”

South Korea's base oil exports hit a record high in September

Affected by the rise in base oil prices, South Korea's base oil exports hit a record
high in September.
South Korea's base oil exports were 443212 t in September, up 31% from August, 14% from the same period in 2020 and 16%
from the same period in 2019.
South Korea's base oil exports in September were US$521.
9 million, up 35% from August, 148% from the same period in 2020 and 90%
from the same period in 2019.
This is the third month of South Korea's base oil exports exceeding $400 million this
year.
South Korea is one of the world's largest base oil exporters, and most of its production is sold to markets around the world, generating significant profits
for the country's refiners.
Korean base oil manufacturers mainly include SK lubricants, S-Oil, GS Caltex, Hyundai Shell base oils, etc
.