Slow Natural Gas Production Impacts MEA Triazine Demand in Asia-Pacific Region

Monoethanolamine (MEA) Triazine prices have been declining in the Asian market as demand for the product from natural gas industries has slowed down. Since ONGC's natural gas production fell by 6% in April, the demand for MEA Triazine was also reduced as a hydrogen sulfide scavenger from the natural gas stream. However, the inventories were optimum to satisfy the customer's appetite.

MEA Triazine is predominantly utilized in gas treatment procedures in order to eliminate contaminants like hydrogen sulphide (H₂S) and carbon dioxide (CO₂) from the natural gas stream, notably in natural gas sweetening operations. As a result, the amount of natural gas that has to be treated directly affects the demand for MEA Triazine.

The amount of natural gas that has to be processed has, however, dropped as a result of the April 2023 decline in natural gas output. As a result, the Asia-Pacific area saw a decline in the market for chemicals used in gas treatment, such as MEA Triazine.

In an upstream market, the reaction of MEA with Formaldehyde and Ammonia results in MEA Triazine, where one of the feedstock, Ammonia, prices was witnessed falling since March 2023. Due to the weaker feedstock market, the cost of making MEA Triazine has also decreased.

In terms of demand, downstream demand has not been as strong as producers must have anticipated, which is why stockpiles in the area were accumulated. As a consequence of a decline in demand from the oil and gas sectors, producers were forced to cut their rates.

In conclusion, ChemAnalyst said that because regional demand has not been optimal and stockpiles are also growing, the price of MEA Triazine is projected to follow a downward trend. However, since MEA Triazine is mostly used as a hydrogen sulfide scavenger for oil and gas applications, thus MEA Triazine producers must pay attention to natural gas production.