Optimising profitability in a changing global market

Today, new engineering best practices and technology innovation are emerging that address these challenges. Crucially, the role of process optimisation software helps companies overcome operational challenges to drive profitability.

Changing global market
The Middle East petrochemical industry has boomed over recent decades on the back of inexpensive gas and ethane feedstock. Nevertheless, growing local demand for gas by electricity producers and the limited supplies available has led to a diversification into propane/butane and naphtha based cracking plants in the Middle East where the price advantage is smaller. In fact, there is so much "stranded" excess propane in the US as a result of the shale gas explosion the price has dropped to around $500/ton, meaning it is now cheaper in the US than in the Middle East by about 23%. The impact on Middle East producers could be significant as margins are squeezed and new capacity shifts to these new feedstock sources. The US shale gas/shale oil industry is already putting pressure on European operators and they are now caught between cheap chemical imports from the US and the Middle East.

Many companies have standardised on process optimisation software to help implement operational excellence programmes across manufacturing assets. For example, refineries in the Middle East face pressures to cut operating costs while maximising throughput and minimising inventories. Decision-makers must navigate challenges around operational issues, external market forces and delivering a specific product slate based on an optimal economic plan.

One conspicuous trend in the Middle East oil and gas sector is the design and construction of a growing number of mega-sites across the region. This covers refineries and large integrated petrochemical plants. These new assets enable production flexibility for manufacturers and the ability to exploit new product opportunities by delivering tightly-specified products that can be sold at premium prices. In much of the region, the focus is continuing to extend the value chain. In refining, many plant revamps are in response to more stringent regulations. In petrochemicals, the Middle East is also becoming a producer of new, higher margin products.

Energy reduction and energy efficiency is increasingly a priority for the region's oil and gas companies in order to deliver enhanced profitability while reducing environmental impact. Together, these operational and industry trends are adding complexity and driving demand for solutions that deliver process optimisation and operational efficiencies. For petrochemical and refinery plants, investment in software tools is essential to manage and optimise the operation.

Optimising Profitability
To help Middle East companies optimise their operations, process optimisation software has been adopted to deliver competitive advantage and profitability by increasing throughput and productivity, reducing costs, enhancing capital efficiency and decreasing working capital requirements. The recent launch of aspenONE^? V8 delivers innovations in advanced process control, solids modelling, demand forecasting, energy and economic analysis. New and occasional users become proficient faster and experienced users can do more with usability and visualisation enhancements enabling engineers to collaborate more easily, shorten project times and increase productivity.

The outlook is bright for refining and petrochemicals industries in the region. Drivers for project development continue to be a combination of high oil and petrochemical prices and economic growth combined with the commitment to invest in domestic infrastructure. However, shale gas in the US is a new factor. The exploitation of this unconventionalAir Jordan III 3 Shoes