MTBE still in poor health, despite the Clean Air Act

Journal Article · Wed May 25 04:00:00 EDT 1994 · Chemical Week

OSTI ID:508618

Wood, A

After the second winter oxygenated fuels program of the 1990 Clean Air Act, producers of methyl tert-butyl ether (MTBE) are still feeling the chill of poor profitability. Despite the strong demand growth for MTBE to meet oxygen requirements in reformulated gasoline (RFG), oversupply still dogs the market. That, combined with a run-up in feedstock prices, has seen margins for MTBE markers all but evaporate. And it seems matters are likely to get worse before they get better. This week, Belvieu Environmental Fuels (BEF; Houston) expects to startup its 15,000-bbl/day MTBE plant at Mont Belvieu, TX. In late July, Texaco will start up its 15,000-bbl/day MTBE/propylene oxide (PO) plant at Port Neches, TX. In addition, a rash of refinery-based MTBE and tert-amyl methyl ether projects are nearing completion. {open_quotes}Profitability in MTBE has been extremely poor,{close_quotes} says Marvin O. Schlanger, president of Arco Chemical Americas, the largest MTBE producer. There has, however, been some recent recovery on the spot market, with MTBE moving from less than 60 cts/gal to near cash-cost levels of 70 cts/gal. But contract prices remain depressed, and strength in butane and methanol pricing have all buy wiped out any gains in MTBE.

• OSTI ID: 508618
• Journal Information: Chemical Week, Journal Name: Chemical Week Journal Issue: 20 Vol. 154; ISSN CHWKA9; ISSN 0009-272X
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
29 ENERGY PLANNING, POLICY, AND ECONOMY
BUTANE
CHEMICAL INDUSTRY
CLEAN AIR ACTS
ETHERS
FUEL ADDITIVES
METHANOL
PETROLEUM INDUSTRY
PROFITS
SUPPLY AND DEMAND