The global energy markets are witnessing a dramatic transformation with the discovery of vast supplies of unconventional gas, particularly in North America. Even with growing gas demand, the local supply will keep gas prices low in North America, and if other sources of unconventional gas emerge globally, the same effect could be seen in those locations as well.
In contrast long term demand projections indicate that oil demand will continue to grow and that supply with keep pace but it’s highly likely that the oil price will remain high globally, relative to gas.
As a result, there are significant commercial opportunities for converting gas and coal to oil-priced products, particularly in the traditional petrochemicals or refined fuels sectors. Both coal and gas value chains can go through syngas and methanol intermediates.
CECC business is to horizontally develope and vertically integrated the gas-to-methanol process (GTM) and methanol-to-olefin chemicals process (MTX), that is the GTX value chain development.
The GTX value chain through methanol offers some highly attractive opportunities for CECC to aggressively monetize its technology portfolio, in particular its C-MTX and C-BD technology platform. To achieve this CECC has identified several aspirational players in the GTX value chain that lack specific capabilities or business models to fully participate, as well as upstream players unfamiliar with the chemicals sectors who have not considered this path to monetize their reserves.
By bringing these players together around a project with CECC technologies at its core, CECC can more effectively grow its sales opportunities, while at the same time look to access significant additional revenues from the project itself.
This highly innovative approach is only possible because CECC has a critical technology that can create the core of the differentiated downstream project, and because it has the business development know-how to formulate the value chain concept and investment case, bringing the right partners together.