Linear Alpha Olefins (LAOs) and Higher LAOs Market Introduction

Linear Alpha Olefins (LAOs) and Higher LAOs Market Introduction

LinearAlpha Olefins(LAOs)are straight-chain hydrocarbons characterized by a double bond in the terminal or alpha positions. The production of LAOsyields an entire range of even-numbered carbon chain-length LAOs rather than a single product. Chain lengths vary from four carbons (butene-1) to more than thirty carbons (expressed as C30+). LAOs include a range of industrially important alpha-olefins,including butene-1, hexene-1, Octene-1, Decene-1, Dodecene-1, Tetradecene-1, 1-hexadecene, Octadecene-1.There are also many other higher blends of C20-C24, C24-C30 and C20-C30 range LAO fractions. At a global level, most of the LAO plants are based on ethylene oligomerization process.

The biggest outlet for LAOsare their use as co-monomers for polyethylene(HDPE and LLDPE) production while other important applications include synthetic lubricants, detergent intermediates, plasticizers, oil-field, paper sizing chemicals and other applications. The production of LAOs can be divided into either full range LAOs or on-purpose LAOs like butene-1, hexene-1 and octene-1. Each of the end-use of the application market has different characteristics and follows different trends in terms of growth, per capita consumption, regional/country coverage, customer base, quality requirements, selling channels and off-take volumes. This makes the LAO business challenging and complex one where producers have to balance the requirement of serving the LAO end-used markets as well as optimizing the revenue across the complete spectrum of all fractions of LAOs products. The global LAOs demand in 2008 witnessed a scenario where the market contracted by almost 5.0%, however, the market recovered in 2010 and by 2011; the demand bounced back to pre-economic downturn levels.