Gulf petchem production capacity up 13.5pc
Dubai, June 19, 2012
The petrochemical production capacity in the Gulf region soared to nearly 116 million tonnes in 2011, up 13.5 per cent compared to 102 million tonnes the previous year, according to a report.
Saudi alone accounted for over half of the $100 billion in sales generated by the GCC petrochemicals sector, with global giant Saudi Arabian Basic Industries Corp (Sabic) netting $50.64 billion in total revenue and a net profit of $7.8 billion in 2011, said the Gulf Petrochemicals & Chemicals Association (GPCA) in its 2011 annual report.
The GPCA annual report, which was released today, provides a comprehensive overview of the major sector developments in each of the Gulf states on the back of further expansion of manufacturing facilities.
The report also described 2011 as a year of consolidation after the demand slump caused by the 2008 economic downturn, with the industry recording sales and revenue growth and notable progress in the development of new projects.
Commenting on the record growth, Dr Abdulwahab Al-Sadoun, the GPCA secretary general said, 'Continued investment and a cluster of significant new deals demonstrate the leading role the GCC petrochemicals sector is now playing worldwide.”
One of the most significant projects announced last year was Sadara Chemical, a JV between Saudi Aramco and Dow Chemical signed in October, which will develop 26 manufacturing units specializing in polyurethanes and other high-performance polymers.
Meanwhile in Abu Dhabi, Borouge, a JV between the Abu Dhabi National Oil Company and Borealis, had awarded a number of large contracts in 2011 to expand its petchem complex, including a $111 million building infrastructure contract to Alpine Deutschland and a $169 million deal to Hyundai to build a cross-linked polyethylene (XLPE) unit.
When fully operational in mid-2014, the Ruwais-located Borouge 3 site will more than double the joint venture’s existing output, increasing Borouge’s total capacity to 4.5 million tons and create the largest integrated single-site polyolefins complex in the world, said the report.
Addressing the key members, Dr Al-Sadoun said, “The GPCA is pleased to announce this market growth and to recognize the contribution of every industry player across the region.”
On the 2012 outlook, the GPCA chief said, 'We are optimistic about 2012, despite the gloomy economic forecast in European and overseas markets, due to the continued focus on technology, innovation and long-term partnerships.”
“The entry of industry leaders such as Kuwait Petroleum Corporation and Sabic into China through the signing of large-scale petrochemicals joint ventures is another positive trend for the GCC sector,” he added.-TradeArabia News Service