Nippon Oil targeting aromatics production using light cycle oil

Nippon Oil has begun the development of a more cost-efficient method to produce aromatics from light cycle oil than current processes, which require large quantities of hydrogen. The move, an about-face from its previous plan to produce aromatics from light naphtha using the Z-Forming process, stemmed from the likelihood of light cycle oil going into oversupply. The company said that demand for its light cycle oil has been declining amid sluggish domestic demand and a surge in fuel switching, so it plans to use the fraction as an aromatics feedstock to enhance the competitiveness of its petroleum refineries. (January 22, 2010)