Our Taiwan petrochemical industry guide explores the local petrochemical industry and is a useful overview for anyone that wants to have a better understanding of this important traditional industry. Our Taiwan petrochemical industry guide will be updated from time to time and covers information about the various petrochemical zones, and the demand of major petrochemicals. Our guide was last updated on 30 October 2024.
Petrochemical zones
Taiwan has several petrochemical industry zones mostly located on the east coast of the island. They include CPC Taoyuan Refinery, Kuan In Industrial Park, Toufen Complex, Chang Ping Industrial Park, Nan Kang Industrial Park, FPG Mailiao Complex, Shin Kang Industrial Park, Renwu – Dashe Complex, Dafa Industrial Park, CPC Ta Lin Refinery, and Linyuan Complex.
Our below Infographic shows the approximate location of each of these petrochemical industry zones.
Taiwan petrochemical industry Infographic
Below is a handy Infographic to give you a simple overview of the Taiwan petrochemical industry.
Naphtha crackers
Taiwan operates five naphtha crackers with a total ethylene capacity of 4.0 million mt per annum. CPC operates two naphtha crackers in Linyuan with a total ethylene capacity of 1.0 million mt per annum, while Formosa has three naphtha crackers at their 2,603 hectares complex at Mailiao with a total ethylene capacity of 3.9 million mt per annum.
Compared to other Asian regions, Taiwan’s crackers are cost-competitive with their facilities being larger and newer. This is the result of old crackers being replaced over time. CPC Corporation scrapped their oldest cracker built in 1978 in Linyuan in 2012, while their Kaohsiung Naphtha cracker from 1994 was shut down a few years ago in 2015, mainly due to protests from local residents. The current five crackers were built in 1984, 1998, 2000, 2007, and 2013.
Refinery integration
The fact that the naphtha crackers are integrated with local refineries is a great advantage. CPC’s two operating oil refineries at Taoyuan and Ta Lin currently have a combined daily refining capacity of 500,000 barrels. Formosa’s oil refinery’s capacity increased from 450,000 to 540,000 barrels per day upon the completion of its Phase IV expansion. The naphtha capacity at Maliao increased to 4 million tons per annum, which is sufficient to supply the entire Mailiao Complex, for example.
Since the crackers are integrated with their own refineries, both CPC and Formosa can easily switch between Naphtha and LPG feedstock based on market conditions. Crackers that are not integrated will need to buy LPG in the spot market, which may be more costly and require longer planning and delivery times.
Petrochemical demand
In this section we will look at the demand for basic chemicals, major plastics, synthetic fiber intermediates, and major synthetic rubbers by taking the sum of production and imports and deducting exports. Production, import, and export data is the data collected and published by the Petrochemical Industry Association of Taiwan (PIAT).
You can also find more information about PIAT in our liquid bulk & chemical directory.
Demand for basic chemicals
Ethylene: In 2022, demand for Ethylene stood at 3,507,078 MT based on a production of 3,318,393 MT, imports of 339,573 MT, and exports of 150,888 MT.
Propylene: In 2022, demand for propylene stood at 2,510,006 MT based on a production of 2,932,941 MT, imports of 188,228 MT, and exports of 611,163 MT.
Butadiene: In 2022, demand for butadiene stood at 573,076 MT based on a production of 457,250MT, imports of 162,975 MT, and exports of 47,149 MT.
Aromatics: In 2022, demand for aromatics stood at 4,155,889 MT. Benzene saw a production of 1,527,110 MT, imports of 592,181MT, and exports of 30,000 MT. Toluene saw a production of 271,658 MT, imports of 72,809 mt, and exports of 239,639 MT. Xylenes saw a production of 1,823,844 MT, imports of 1,419,747 MT, and exports of 1,281,821 MT.
Overall demand for these basic chemicals stood at 10,746,049 MT, a decrease of 17% compared to 2021, and a decrease of 12% compared to 2013. In 2022 this covers Aromatics (38.7%), Ethylene (32.6%), Propylene (23.4%), and Butadiene (5.3%).
Demand for major plastics
Polyvinyl Chloride (PVC): In 2022, demand for PVC stood at 423,930 MT based on a production of 1,679,004 MT, Imports of 26,945 MT, and exports of 1,282,019 MT.
Low Density Polyethylene (LDPE): In 2022, demand for LDPE stood at 454,409 MT based on a production of 621,568 MT, Imports of 354,635 MT, and exports of 521,794 MT.
High Density Polyethylene (HDPE): In 2022, demand for HDPE stood at 312,450 MT based on a production of 442,808 MT, Imports of 95,036 MT, and exports of 225,393 MT.
Polypropylene (PP): In 2022, demand for PP stood at 471,767 MT based on a production of 1,094,493 MT, Imports of 172,605 MT, and exports of 795,332 MT.
Polystyrene (PS) / Acrylonitrile Butadiene Styrene (ABS): In 2022, demand for PS/ABS stood at 233,646 MT. PS saw a production of 743,517 MT, imports of 4,603 mt, and exports of 714,312 MT. ABS saw a production of 1,094,435 MT, imports of 6,885 MT, and exports of 901,483 MT.
Overall demand for these major plastics stood at 1,896,202 MT, a decrease of 18% compared to 2021, and a decrease of 8% compared to 2013. In 2022 this covers PP (24.9%), LDPE (24%), PVC (22.4%), HDPE (16.5%), and PS/ABS (12.3%).
Demand for synthetic fiber intermediates
Caprolactam (CPL): In 2022, demand for CPL stood at 296,829 MT based on a production of 153,000 MT, Imports of 143,894 MT, and exports of 65 MT.
Acrylonitrile (AN): In 2022, demand for AN stood at 287,630 MT based on a production of 359,913 MT, Imports of 84,693 MT, and exports of 156,976 MT.
Purified Terephthalic Acid (PTA): In 2022, demand for PTA stood at 2,120,010 MT based on a production of 3,046,139 MT, Imports of 51,805 MT, and exports of 977,934 MT.
Ethylene Glycol (EG): In 2022, demand for EG stood at 777,224 MT based on a production of 1,302,974 MT, Imports of 50,763 MT, and exports of 576,513 MT.
Overall demand for these synthetic fiber intermediates stood at 3,481,683 MT, a decrease of 22% compared to 2021, and a decrease of 25% compared to 2013. In 2022 this covers PTA (60.9%), EG (22.3%), CPL (8.5%), and AN (8.3%).
Demand for major synthetic rubbers
Styrene Butadiene Rubber (SBR): In 2022, demand for SBR stood at 45,427 MT based on a production of 96,219 MT, Imports of 21,683 MT, and exports of 72,475 MT.
Butadiene Rubber (BR): In 2022, demand of BR stood at 67,076 MT based on a production of 112,324 MT, Imports of 25,142 MT, and exports of 70,391 MT.
Overall demand of these major synthetic rubbers stood at 112,503 MT, a decrease of 18% compared to 2021, and a decrease of 19% compared to 2013. In 2022 this covers BR (59.6%), and SBR (40.4%).
Outlook
From the above data, we can see a decrease in demand that puts pressure on this traditional market. Many factors impact the sector’s demand such as the price of oil and the current oversupply of many chemicals in international markets.
Conclusion
We hope that this guide is useful and provides a good overview of the Taiwan petrochemical industry. If you have any questions, you can always contact us.
Our guide was last updated on 30 October 2024.
Photo credit: Canva, and TPCB
