Analysis of the Global Market for Condensates and Reformates
The condensates market is supply driven and depends on natural gas and oil production. Before the recent plummeting of oil prices, natural gas production was expected to increase at a compound annual growth rate (CAGR) of % from 2013 to 2020—faster than crude oil growth (at %)—due to factors such as increased shale plays, which further enhanced the supply of condensates. the supply of condensates.
The Middle East, North America, and Russia have the highest production of condensates globally, although exact estimates differ by source. The lack of a conclusive definition of what constitutes “condensates” has resulted in a variety of country estimates.
Condensate demand is largely located in Asia due to the need for naphtha. Countries such as Japan, Singapore, and South Korea rely entirely on condensate imports, while other countries, such as China, Indonesia, Malaysia, and Thailand, require imported condensates to supplement local production to meet demand.
Condensate prices are linked to the price of oil, and trade below it. However, the exact price varies by region, the American Petroleum Institute (API) gravity, and whether the condensates are used domestically or exported.
The recent slump in oil prices to under $ a barrel has prompted major condensate-producing countries, such as Qatar and Saudi Arabia, to increase domestic use and to process condensates into more value-added oil products, such as naphtha, than simply exporting large volumes of condensates. This, however, is expected to reduce the price of naphtha in 2015.
About this report
This study provides an overview of the global condensates and reformates markets. It identifies the key regions involved along with estimated capacities, indicates pertinent factors influencing market demand versus supply, and provides an analysis of the expected impact of plummeting oil prices on both markets over the short term (1 to 3 years). A historical overview of crude oil prices is also provided to further the reader's understanding of the influence of these prices on the condensates and reformates markets.
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