Jan 11 2011
Research and Markets has announced the addition of the "Peru Petrochemicals Report 2011" report to their offering.
Peru Petrochemicals Report provides industry professionals and strategists, corporate analysts, petrochemical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Peru's petrochemicals industry.
The future of the Peruvian petrochemicals industry is bound up with the development of the massive Camisea gas field with Peru is looking to leverage its advantage in ethane feedstock, but BMIs latest Peru Petrochemicals Report notes that there was little progress in developing plans for new downstream industries.
The Camisea gas field has the potential to provide enough ethane feedstock for at least one world-scale 1mn tpa cracker. However, as of 2010 Peru had no production capacity for basic petrochemicals such as ethylene, propylene or polymers such as polyethylene and polypropylene. A small domestic market would mean any development of the petrochemical sector would have to be export-oriented. According to BMI forecasts, it is highly unlikely that Peru will see olefins and polyolefins capacity coming onstream in the next five years. The only development in this area is the proposed JV by PetroPeru and Brazils Petrobras and Braskem to create a facility that will produce 700,000-1.2mn tpa of PE. Braskem says its plans for studying investments in Peru remain in the MoU stage and by the end of 2010 had not advanced to the planning stage. However, the availability of related gas now appears to be even more attractive than it was when Braskem first started studying the project more than in 2009, Braskem says. However, the project has been pushed back by two years to 2016 as investors wait for an increase in gas supplies. We are mindful that past proposed petrochemical projects have not progressed and that some plants may not get off the drawing-board.
Recent attention has focused on the development of the fertiliser sector. Proposed projects could provide 2.41mn tpa of ammonia capacity, but BMI does not believe any of these projects will be completed before 2015. A Peruvian-Chilean consortium seeks to begin production at a US$650mn petrochemicals plant in 2012, after the government approved the project. Nitratos del Peru, a partnership between Brescia group and Sigdo Koppers, states that the plant will produce around 710,000tpa of ammonia and 350,000tpa of industrial-grade ammonium nitrate. The plant will be built in Pisco, in the Ica region.
While the domestic petrochemicals market will remain small, it will be stable with Perus economy performing favourably in regional and global terms. The main concern, as elsewhere, is the downturn in construction, which is not being helped by the deterioration of the investment climate amid heightened political risk as the country approaches the 2011 elections. This could knock the market in construction materials, notably PVC. Nevertheless, private consumption growth levels will remain relatively stable, albeit at a gentler rate, which will benefit goods that utilise PE and PP.
Key Topics Covered:
Executive Summary
SWOT Analysis
Global Petrochemicals Overview
Latin America Overview
Peru Market Overview
Industry Trends And Developments
Petrochemicals Business Environment Ratings
Industry Forecast Scenario
Company Monitor
Country Snapshot: Peru Demographic Data
BMI Methodology
Companies Mentioned:
- Petroper
- Petrobrs Energa Per
- Quimpac