Challenges Continue to Plague the Use of Methyl Tert-Butyl Ether (MTBE) in the Gasoline Additives End-Use Market


The global MTBE market is projected to reach 24.5 million tons by 2024, amidst challenges such as stringent environment protection regulations, increased policy led support for ethanol gasoline and the resulting replacement of MTBE by ethanol as an oxygenate additive for standard gasoline.

Methyl tertiary-butyl ether (MTBE), is a form oxygenate produced from methanol and isobutylene. Based on its inherent properties, MTBE is blended in gasoline for producing cleaner burning fuels in most developing countries.  Use of MTBE in gasoline blending has been banned in most developed countries including the US, Japan and parts of Europe. However, consumption remains steady in developing regions such as China, India, Mexico, and the Middle East. Brazil is an exception to the trend owing to the large availability of ethanol and the practice of blending ethanol in substantial quantities with gasoline. MTBE represents the second widely used gasoline oxygenates. Despite the effectiveness of MTBE to act as an octane enhancer and provide cost benefits, the additive has been banned in developed markets due to growing concerns over groundwater contamination. This is leading to the rapid substitution of MTBE by ethanol and Ethyl Tertiary Butyl Ether (ETBE). At present, ethanol represents the most widely used gasoline octane improver/oxygenate with significant consumption in the U.S. In Europe, led by the EU renewable fuels directive, bio-ETBE is widely used gasoline additive.

In developing markets, MTBE continues to be an attractive substitute to aromatics in gasoline, supported by the chemical’s widespread availability as a cheap feedstock and its ability to serve as the most immediate solution towards reducing vehicular emissions. Also, MTBE represents an affordable substitute for toxic fuel components such as lead, sulfur, olefins and benzene. MTBE demand in the Chinese chemical sector is also likely to rise in line with the expanding production capacity of isobutylene-isoprene rubber (IIR) and methyl methacrylate (MMA), the two downstream products of MTBE. Unlike other ethers, the compound does not form highly explosive peroxides and can be employed as an extraction agent or solvent in continuous processes. Bio-MTBE, an emerging niche segment, employs bio-methanol from renewable sources for production of oxygenate. Bio-MTBE is considered an attractive option in the 2nd generation biofuel landscape as it can be used as a blending compound without any compatibility issues.

As stated by the new market research report on Methyl Tert-Butyl Ether (MTBE), China represents the largest regional market worldwide, followed by the Middle East & Africa. Middle East & Africa is forecast to emerge as the fastest growing market with a CAGR of 5.4% over the analysis period. Growing vehicular pollution, increasing demand for cleaner fuels, rise in vehicle population and increasing consumption of gasoline, represent key growth drivers in many Asian countries. On the other hand, substitution by ETBE and ethanol represent the challenges for the MTBE market. Gasoline Blending is the central outlet for Methyl Tert-Butyl Ether (MTBE), with butyl rubber synthesis being the next major application.

Major players in the market include China Petrochemical Corporation (Sinopec Group), Emirates National Oil Company (ENOC), Eni S.p.A., Enterprise Products Partners L.P., Evonik Industries AG, Formosa Plastics Corporation, Huntsman Corporation, LyondellBasell Industries N.V., Panjin Heyun Industrial Group Co., Ltd., PetroChina Company Limited, Qatar Fuel Additives Company Limited, Saudi Basic Industries Corporation, Shandong Yuhuang Chemical (Group) Co., Ltd., SIBUR, and TPC Group among others.

The research report titled "Methyl Tert-Butyl Ether (MTBE) - Market Analysis, Trends, and Forecasts" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, innovations and launches, and strategic industry activities various players. The report provides market estimates and projections in Thousand Metric Tons for Methyl Tert-Butyl Ether (MTBE) for major geographic markets such as Europe, China, Middle East & Africa, and Rest of World.

Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA, All Rights Reserved.

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