|By PR Newswire||
|August 15, 2014 12:45 AM EDT||
SINGAPORE, Aug. 15, 2014 /PRNewswire/ -- New flows of lightly distilled US condensate exports to the expanding Asia-Pacific market for petrochemical feedstocks highlight the need for more transparent price identification for condensates in the region.
The Argus Condensate Index (ACI), launched by energy price reporting agency Argus this month, is a key indicator of value for participants in the emerging market to supply petrochemical feedstocks from the US and other producers to Asia-Pacific.
The first tankers carrying US lightly distilled condensate have been booked to take cargoes from the Gulf coast to Japan and South Korea, following US commerce department authorisation of exports by US firms Pioneer and Enterprise from the Eagle Ford shale formation in Texas. The move clarifies the terms of a 40-year old ban on virtually all US crude and condensate exports. At the same time, new splitters in South Korea, Singapore and China are boosting Asia-Pacific demand for condensates this year.
The ACI will bring transparency to a market affected by diverse price signals, including the relative value of crude and naphtha. The daily ACI reflects the lowest delivered price in southeast Asia of the two most traded condensate grades in the region — Qatari Deodorized Field Condensate (DFC) and Australian North West Shelf (NWS). Qatar exports 22 cargoes of DFC a month, mostly to Asia-Pacific, and Australia markets five cargoes of NWS condensate each month.
Argus Media chairman and chief executive Adrian Binks said: "Argus works with the industry to develop the price assessments needed for transparency. The ACI will help market participants understand value and realise opportunity."
The ACI is published in the daily Argus Crude market report and through Argus Direct, an advanced online platform.
Notes to editors
Condensate is formed when pressurised field petroleum condenses from gas into light liquids on coming to the surface, where the temperature and pressure are lower. Distilling it helps stabilise the condensate, and the commerce department has now made clear that this process makes it eligible for US export. Condensate can be refined in the same way as crude, but splitters are often a more appropriate way of obtaining higher-value products and petrochemicals from the feedstock.
US condensate output has doubled to 1mn b/d in five years. But splitters to process the rising production have yet to be built in the US, while condensate splitter capacity in Asia-Pacific will reach 1.1mn b/d by the end of this year from about 665,000 b/d a year earlier. Asia-Pacific's newly added processing capacity can handle a range of condensate with varying sulphur content from Asia, west Africa, the Mediterranean and now the US. And regional refineries process condensates in crude distillation units (CDUs) when they calculate that margins from processing the feedstock are better than for light crude.
The bulk of the increase in Asia-Pacific condensate splitter capacity is related to the start-up of four projects — Jurong Aromatics (100,000 b/d) in Singapore, SK Energy (120,000-140,000 b/d) and Samsung Total (140,000 b/d) in South Korea, and China's Tenglong unit, which originally came on stream in 2013 but has been boosting runs this year.
Distillation uses heat to separate a liquid into distinct components, and is associated with almost every downstream process, especially CDUs in refineries.
Light distillation is used in a stabiliser, where a small, simple fractionator removes the most volatile elements in crude and condensate output in the field.
A condensate splitter is a simple fractionator that can separate liquids into fewer components than a modern refinery's CDU, but more components than a stabiliser used in light distillation. Splitters separate the lightest components in condensates — including ethane, propane and the C5+ group, which comprises naphtha and natural gasoline.
+65 6496 9960
+44 20 7780 4272
+ 1 713 968 0000
About Argus Media
Argus is an independent media organisation with over 600 full time staff. It is headquartered in London and has offices in each of the world's principal commodity centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyse market and industry trends.
More than half of Argus employees are commodity journalists who specialise in reporting news and price information relating to physical energy and related commodity markets. They operate according to a rigorous Editorial Code of Conduct and a compliance and ethics policy that align with best journalistic practice, including the avoidance of conflicts of interest.
Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical, metals and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies use Argus information for analysis and planning purposes.
Argus has 19 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centres of the commodity industries. Argus was founded in 1970 and is a privately held UK-registered company.
ARGUS, ARGUS MEDIA, the ARGUS logo, DEWITT, FMB, FUNDALYTICS, METAL-PAGES, JIM JORDAN & ASSOCIATES, JJ&A, ARGUS publication titles and ARGUS index names are trademarks of Argus Media Limited.
SOURCE Argus Media
Sep. 28, 2016 03:15 PM EDT Reads: 4,113
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Sep. 28, 2016 03:15 PM EDT Reads: 299
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 28, 2016 03:15 PM EDT Reads: 1,295
Sep. 28, 2016 03:00 PM EDT Reads: 3,857
Sep. 28, 2016 02:45 PM EDT Reads: 1,736
Sep. 28, 2016 02:30 PM EDT Reads: 2,918
Sep. 28, 2016 02:30 PM EDT Reads: 3,288
Sep. 28, 2016 02:00 PM EDT Reads: 4,411
Sep. 28, 2016 02:00 PM EDT Reads: 4,746
Sep. 28, 2016 01:57 PM EDT Reads: 193
Sep. 28, 2016 01:23 PM EDT Reads: 224
Sep. 28, 2016 01:00 PM EDT Reads: 3,547
Sep. 28, 2016 01:00 PM EDT Reads: 159
Sep. 28, 2016 01:00 PM EDT Reads: 1,104
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Sep. 28, 2016 12:30 PM EDT Reads: 5,098