Episode 1225: Think Tank: Europe petrochemicals could learn lessons from Japan
European petrochemical leaders should take inspiration from Japan, which is further ahead in reducing base chemicals while expanding in specialties and low carbon technologies. - Japan hit by high naphtha feedstock costs, growing global overcapacity- 70% of crackers are more than 50 years old- More than 10% of Japan’s crackers could close- Downstream production also closing such as polyethylene terephthalate (PET) and paraxylene (PX)- Japan basic chemicals losing ground, new focus on specialties - Pushing materials for semiconductors, electronics - Also expanding into bio-naphtha and pyrolysis oil - Japan’s chemical companies want to licence recycling technologies- Using ammonia and hydrogen to reduce dependence on LNG- South Korea chemicals face existential crisis