New Demand for Methanol: Fuel Cell

Following the US Transportation Department approval to permit in-flight use of methanol-powered fuel cells for laptop computers it is expected that a slight boost will be seen in both methanol and fuel cells.

Passengers will be allowed to use methanol fuel cells in commercial airliner passenger and crew compartments, major manufacturers of portable consumer electronic devices such as in mobile phones, digital cameras, DVD players as well as laptops.

Methanol for Energy only for China

Methanol usage in the energy sector is widely used in China due to a number of reasons unique to the nation such as the cheap and abundant supply of coal as feedstock for making methanol.

Refining margins in China are currently negative due to lower price of gasoline and even much lower methanol prices. The factor is also driven by transportation infrastructure where local auto manufacturers are looking to capture energy market share with 'low running costs' and the Chinese government was pushing for coal to replace part of energy derived from crude.

Argentina Experiencing Gas Shortage

Argentina is in critical stage of gas shortage. Argentina’s Bahia Blanca petrochemical complex, a prominent petchem complex in Argentina will likely be affected by the scarcity of gas this year. The scarcity of gas is expected due to winter season in the South America.

In 2007, Argentina experienced a snowfall, a first since 90 years and it triggered a nationwide gas shortage. The Bahia Blanca petrochemical complex alone had to shut down for two weeks during winter season due to a gas and electricity shortage. With increasing demand in 2008, and possible shortage, the petchem industry is likely to be impacted in Argentina. Chemical plants are now bulding stocks to mitigate the effect.

Some companies such as Solvay Indupa at the Bahia Blanca complex are having their own electric power plant as a backup in case of the gas shortage. The foundation issue in the Argentine petchem industry is due to lack of long term agreements for natural gas supply between Argentina and its neighbors, Bolivia and Brazil. Bolivia is supposed to send to Argentina some 7.7m m3/day, but in 2007 only sent 6m, ultimately to 3.5m with priority to Brazil.

Algeria Investing Massive $28 Billion for Petrochemical

Algeria is planning an investment of $28bn in the country’s petrochemicals industry over the next five years with developments located on the country’s east and west coasts.

The investment include recent contracts to build ethane and methanol plants by Almet, a consortium set-up for the projects by Lurgi, Japan's Mitsui & Company, Kuwait's Al-Qurain Petrochemical Company and the local Sotraco.

Algeria is attractive to foreign investors due to low cost of feedstock there and its proximity to Europe.

Market Outlook for Russia, Expansion of Petrochemicals

Lets have a look at Russia petchem industry outlook in 2008, the long and short of it.

Currently, Russia is one of the most prominent world leading oil and gas producers due to its high reserve in the country. Russia holds the biggest gas reserve in the world but more than half of its plastics and petrochemical products are imported. 2008 will look into a change in this and potentially become the biggest petrochemical producer in the world.

Russia is planning to raise the overall production of chemicals and petrochemicals by 40% by 2015 at a whopping $163 billion. The plan will comprise of 800 new petrochemical plants expansion and empl0yment