Petrochem projects in the Middle east revive as oil prices rebound

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
Country/CompanyProductTargeted completionStatus
Saudi Arabia
Arabian Industrial Fibers (Ibn Rushd)propylene and derivatives2012planned
Saudi Kayanolefins, aromatics and derivativesQ1 2011under construction
National Chevron Phillipsethylene and derivativesQ4 2011under construction
Petro Rabigh IIolefins, aromatics and derivatives-under study
Saudi Aramco/Dow Chemicalethylene, aromatics and derivatives2014FEED stage
Saudi Aramco/Totalpropylene and aromaticspost 2012 
Abu Dhabi
Borouge IIolefins and derivativesH2 2010under construction
Borouge IIIpolyolefins2014feasibility study stage
ChemaWEyaatolefins, aromatics and derivatives2014under preliminaryengineering
ExxonMobil/Qatar Petroleumethylenepost 2012FEED award delayed
Honam Petrochemical/Qatar Petroleumolefins and derivativespost 2012decision on project deferred to H2
Duqm Refining & Petrochemicalrefinery, olefins and derivativespost 2012delayed
Source: ICIS, Companies
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