October 01, 2019

Africa Alkylate Outlook

Stratas Advisors

Alkylate is an important gasoline blend stock. The blending volume fraction of alkylate is critical to meet RVP, aromatics, sulfur and olefins regulations. Africa is short in alkylate production. The region imports alkylate from Europe and the Middle East. 

Global alkylate demand will stay strong in the short- and long-terms. Even though developed countries will observe a decline in gasoline demand in the coming decade, the global demand for gasoline will remain strong. Increasing gasoline demand, coupled with stringent gasoline specifications, including RVP, will keep alkylate demand strong for the global market. More efficient engines (high compression and direct-injected) prefer higher octane gasoline. 

The Africa region will remain a net importer of alkylate as gasoline demand will remain strong, and an increase in alkylation capacity is projected to lag the increase in gasoline demand. The following chart shows alkylate supply and demand of Africa.  

Alkylate Supply-Demand in Africa (2014-2040)     Units | MBPD


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