Gulf Countries Increase Investment in Petrochemical Industry

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In the new year, members of the Gulf Cooperation Council (GCC) will continue to increase investment in the petrochemical industry, and expansion and product diversification will become the focus of investment.

The rising trend in the price of natural gas raw materials in the region has become more apparent. Although some producers can still enjoy cheap natural gas raw materials of about US$1 per million BTU, the cost of natural gas for most new petrochemical projects has risen to 2.5. ~4 USD/BTU. Vice President Mohammed Nadi Qatar Petroleum (Hamad Rashid Al Mohannadi) said that global proven reserves of natural gas rich Qatar's current natural gas prices have risen to $ 3 ~ 4 / BTU. Natural gas prices have risen sharply, indicating that there is a shortage of ethane supply in the Middle East. This trend has forced petrochemical companies in the Middle East to use heavy raw materials in new projects.

For most governments in the GCC countries, creating more job opportunities has become the focus of work at present, and the petrochemical industry, which is the backbone of the local economy, will shoulder the utmost responsibility. In the Arabian Gulf region, the petrochemical industry will focus on the petrochemical downstream product chain, and will build new multi-product series devices, such as differentiated bulk products, high-performance chemicals and specialty chemicals, etc., to achieve the extension of the petrochemical industry chain and drive the development of other downstream markets. . Many petrochemical companies have begun to implement business diversification plans to increase employment. For instance, Saudi Kajan Petrochemical Company, a subsidiary of SABIC, began producing polycarbonate in Saudi Arabia in 2010. Richard Crosby, general manager of SABIC Innovative Plastics, said demand for polycarbonate for the packaging, construction, and optical markets in the Middle East is growing strongly. Elizabeth recently also claimed the new polyacetal and polymethyl methacrylate apparatus, to broaden the plastic business, and the company is evaluating the feasibility of manufacturing investment in new engineering plastics compounding equipment.

According to the estimates of the American Chemical Industry Council (ACC), the production of chemical products in the Middle East and Africa will increase by 5.2% in 2012, an increase of 29.8% from 2007. Abdulwahab Al-Sadoun, Director-General of the Gulf Petrochemical and Chemical Association (GPCA), said that in the next five years, the production of chemical and petrochemical products in the GCC region will grow at an annual rate of 6.6%, and the total production in the region by 2016 It will reach 134 million tons. Asha Dun said that by then, the Middle East will add 5.75 million tons/year of ethylene production capacity, accounting for 45% of the new basic chemical production capacity in the region.

In the next five years, Saudi Aramco and Sumitomo Chemical's Rabigh refinery project in Shatrabee will double its production capacity. The project is part of Aramco’s strategy to expand its business into the petrochemical sector. A Sadar's recently formed joint venture between Aramco and Dow Chemical (50% stake in both parties) plans to invest US$20 billion in a new petrochemical complex in Saudi Jubail, including a total of 3 million tons/year high Value products, these products will fill the gaps in the region and are expected to be completed and put into operation from 2015 to 2016.

Abu Dhabi National Oil Company (Adnoc) and Borealis, a joint venture - Borouge is currently expanding polyolefin in Ruwais, Abu Dhabi production capacity, intended / year to expand from the current 200 million tonnes to 450 in 2014 10,000 tons/year. Qatar Petroleum and Shell has also recently signed an agreement, plans to invest $ 6.5 billion in new petrochemical complex in Ras Laffan Industrial City, Qatar, is expected to put into operation around 2017.

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