At the 2023 FlexPO+(now incorporated into the ADI Forum), Joseph Gentry, VP, Licensing, GTC Vorro, spoke during the feedstock panel moderated by Uday Turaga, CEO, ADI Analytics. As sustainability becomes a crucial focus in feedstock markets, Gentry said that sanctions on Russian refined products were reshaping feedstock trade. Europe would likely import more diesel from the U.S. as Russian supply shifted to Asia. He said this wouldn’t significantly impact global ethane trade, but some gas oil might divert to diesel production, subtly increasing demand for U.S. ethane exports.
Decarbonization and bio-based feedstocks remained uneconomical without strong incentives due to significantly higher costs. In the ethane market, growing US cracking capacity and long-term contracts drove extraction. However, the price difference between ethane and natural gas still dictated some supply, and rising NGL production could eventually lead to more ethane rejection if capacity growth lags. Addressing sustainability within feedstock markets is essential for future growth.
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