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BMI Announces Latest Report on Petrochemicals Industry in Colombia

Research and Markets has announced the addition of the "Colombia Petrochemicals Report 2011" report to their offering.

Colombia Petrochemicals Report provides industry professionals and strategists, corporate analysts, petrochemical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Colombia's petrochemicals industry.

A refinery expansion programme promises to rapidly increase naphtha feedstock availability to petrochemicals industries, but there are few details on state-owned Ecopetrols plans for associated downstream facilities, according to BMIs latest Colombia Petrochemicals Report. The Colombian government is currently in the middle of a refinery expansion programme, hoping to turn a small oil products import requirement into an equally small export flow. Cartagena and Barrancabermeja, the two largest refineries, are both owned and operated by Ecopetrol and are undergoing significant expansions. Another large, private initiative is a new refinery in Sebastopol, funded by the Exim Bank and the IFC. Overall capacity is forecast by BMI to reach 550,000b/d by 2015 from 335,000b/d in 2010. The programme of expansion offers a great deal of potential for further expansion downstream, particularly in the propylene-PP chain, by providing for an increase in naphtha supply.

BMI is forecasting domestic gas production reaching 12bcm by 2015, with near-term production risk on the upside if the country can find a market for the available gas. The governments Plan de Masificacin de Gas Natural (Natural Gas Mass Consumption Plan) aims to establish the sector as a 'gas hub' for the Andean region. Gas demand could therefore expand at an average of 6.5% a year, but production should at least match demand growth, with scope for more rapid expansion as power generation usage is stepped up.

Vertical integration would also improve the possibilities of expansion. Ecopetrols acquisition of Propilco in 2008 has significantly enhanced Ecopetrols involvement in the petrochemical sector. The acquisition of Proplico will create synergies with its oil operations, with the potential for further expansion. Propilcos expansion programme has seen one of the company's two PP plants increasing capacity from 180,000tpa to 205,000tpa in 2008. In Q209, the expansion of its other PP plant was completed, raising its capacity from 200,000tpa to 250,000tpa. All eyes are now on Ecopetrols plans to develop a polymers complex, which should be clearer in 2011.

However, BMI does not believe the complex will be operational before the expansion of the refineries at Barrancabermeja and Cartagena, which is due to be completed in 2014 or 2015. In 2010 Colombia's petrochemicals facilities included capacities of 120,000tpa ethylene, 45,000tpa benzene, 20,000tpa toluene, 35,000tpa xylenes, 45,000tpa PET, 60,000tpa LDPE, 103,000tpa PS, 400,000tpa PVC, 455,000tpa PP, 115,000tpa ammonia and 185,000tpa urea. These capacities are unlikely to change over the next five years, unless Ecopetrols plans come to fruition within this time.

Key Topics Covered:

Executive Summary

SWOT Analysis

Global Petrochemicals Overview

Latin America Overview

Colombia Market Overview

Industry Trends And Developments

Petrochemicals Business Environment Ratings

Industry Forecast Scenario

Company Profiles

Country Snapshot: Colombia Demographic Data

BMI Methodology

Companies Mentioned:

  • Dow Qumica de Colombia
  • Empresa Colombiana de Petroleos (Ecopetrol)
  • Petroqumica Colombiana (Petco)
  • Polipropileno del Caribe (Propilco)

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