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This report covers supply/demand
for linear alpha-olefins (LAOs) with
carbon chain lengths of four (butene-1)
and higher that are produced in facilities
that generate an entire range of LAOs. Most of the current commercial LAO plants
produce even-numbered alpha-olefins based on ethylene oligomerization. The
exceptions are the coal-based synthetic fuel plant of Sasol Chemical Industries
in South Africa, which currently produces only hexene-1 and octene-1; Q-Chem,
which produces hexene-1 from ethylene; and Dow, which produces octene from
butadiene in Tarragona, Spain. Butene-1, which is produced from refinery and
steam cracker C4 hydrocarbon streams, is not included in this discussion.
World linear alpha-olefin capacity (excluding butene-1 from refinery streams)
amounted to over 3.0 million metric tons by year-end 2006. As of mid-2007 there
were ten producers of alpha-olefins operating twelve plants internationally.
As shown in the following pie chart, four producers account for about 86% of
world capacity:

The largest uses for linear alpha-olefins are as comonomers for polyethylene
production, for the production of alcohols (used largely in detergents and
plasticizers) and for making polyalphaolefins (used in synthetic lubricants).
The use of linear alpha-olefins in the production of polyethylene, for polyalphaolefins
and for use in oil field drilling applications will be the fastest growing
segments in North America. Globally, comonomer-grade LAO consumption will also
be the fastest growing application, particularly LAO consumption for the production
of linear low-density polyethylene resins.
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