Last week began with feedstock supply concerns looming in Asian olefins and polymers markets following the attack on oil facilities in Saudi Arabia, as per market sources in SP Gglobal Platts. Several petrochemical companies announced feedstock supply disruptions last weekend following the attack- Saudi International Petrochemical Company (Sipchem), Advanced Petrochemical Company, National Industrialization Co (Tasnee), Yanbu National Petrochemical Company (Yansab), Saudi Kayan Petrochemical Company and Saudi Basic Industries Corp (Sabic).The companies announced feedstock supply disruptions of around 30-50%.
Saudi Arabia is a key global player in ethylene and ethylene derivatives as most petrochemical firms in the country use ethane as a key feedstock, which has high production yield of ethylene. The Kingdom has a combined capacity to produce 17.5 mln m tpa of ethylene, or around 9% of total global capacity, according to industry sources. The kingdom has a combined polyethylene production capacity of around 9 mln m tpa, or around 8% of global capacity. Saudi Arabia is also a key methanol exporter to Asia, with 6.55 mln m tpa of methanol capacity.