Oil and petrochemical development projects in the Middle East, that were on the drawing board or were initiated have been facing delays since oil prices crashed last year to the level of the mid-thirties. These projects have seen resurrected as oil prices have recoiled. Though oil prices have yet to attain levels reached last year, they have reached break-even levels. Project slowdowns have also been attributed to a yen by oil and petrochem majors to take advantage of falling prices of construction materials as well as services. Since demand for project services from the Western world has almost come to a standstill, it is becoming increasingly feasible to renegotiate with equipment suppliers, engineering contractors and other supply chain interests.
SABIC has major expansion plans lined up in the industrial city of Jubail, Dammam and Yanbu, spiking its petrochem production to 135 mln tpa by 2020. Saudi International Petrochemical Co (Sipchem) plans for a 4 billion riyals (US$1.07 bln) second phase, comprising an acetyls complex that will produce 450,000 tpa acetic acid, 330,000 tpa of vinyl acetate monomer and 345,000 tpa of carbon monoxide are near completion.
The Major projects underway in the Middle East are listed in the table
|Arabian Industrial Fibers (Ibn Rushd)||propylene and derivatives||2012||planned|
|Saudi Kayan||olefins, aromatics and derivatives||Q1 2011||under construction|
|National Chevron Phillips||ethylene and derivatives||Q4 2011||under construction|
|Petro Rabigh II||olefins, aromatics and derivatives||-||under study|
|Saudi Aramco/Dow Chemical||ethylene, aromatics and derivatives||2014||FEED stage|
|Saudi Aramco/Total||propylene and aromatics||post 2012||
|Borouge II||olefins and derivatives||H2 2010||under construction|
|Borouge III||polyolefins||2014||feasibility study stage|
|ChemaWEyaat||olefins, aromatics and derivatives||2014||under preliminaryengineering|
|ExxonMobil/Qatar Petroleum||ethylene||post 2012||FEED award delayed|
|Honam Petrochemical/Qatar Petroleum||olefins and derivatives||post 2012||decision on project deferred to H2|
|Duqm Refining & Petrochemical||refinery, olefins and derivatives||post 2012||delayed|
| Source: ICIS, Companies|