A shift being witnessed in the centre of gravity of the petrochemical industry to the Middle East region will also be accompanied by a shift in trade flows.
The conventional markets USA and Europe are changing from a net export or balanced position to a significant importer and China continues to be barely 50% self sufficient despite several new capacity startups in 2005. Concurrently, the Middle East region embarks upon its fourth wave of expansion of ethylene complexes and continues to contribute the lion's share of capacity expansions towards 2010. The regions' contribution to the global petrochem industry is growing significantly, with over 50% of the world's annual new ethylene capacity estimated to be added by the countries in the region by 2010.
The massive capacity expansions will, however, place a strain on the logistics and supply chain infrastructure. The effort to scale this infrastructure in tandem with the capacity growth will have to be organised around industry bodies to ensure success through a coordinated effort.
23-Nov-05 
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