The petrochemical landscape in Asia is changing as regional companies rush to reorganize their operations and switch from traditional feedstocks based on naphtha to more economical options like ethanol and ethane. Oversupply, razor-thin margins, and a spike in U.S. ethane exports are driving the shift, making it necessary for Naphtha to struggle for relevance in a feedstock hierarchy that is changing quickly.
A deliberate race for flexibility is at the core of this change. Asia&#xx;s largest petrochemical companies, including China&#xx;s SP Chemicals, Japan&#xx;s Mitsui Chemicals, and South Korea&#xx;s YNCC, are investing in technologies that enable crackers to switch between feedstocks based on availability and price. Even though Naphtha is still in charge, its uncontested rule is currently being threatened.
Flexible crackers that can handle ethanol, LPG, or ethane are being praised as a future-proof solution, according to industry...
