Saudi Arabia's emerging strength as a global petrochem hub will arise from increased capital investment in hydrocarbon sub-sectors to US$94.4 billion in the period from 2004-2009. Saudi Arabia's petrochem industry continues to grow at a consistent and exponential pace accounting for 7% of the global supply for basic and intermediary petrochemical products. Strategic foresight has resulted in a winning formula for petrochemical investments exemplified by Jubail and Yanbu industrial cities, and the building of a gas network by Saudi Aramco which formed the backbone of SABIC's petrochemical industrial plants.
Reforms and developments create the enabling environment for investments in the energy sector and its value chain. The Kingdom's strong infrastructure, significant cost advantage due to lower average variable and fixed cost and the competitive and fixed natural gas prices render it an attractive destination for investments in crackers of Olefins and derivatives. The kingdom's energy strategy promotes diversification into downstream and the development of export-oriented plastic conversion industries resulting in further opportunities.
Over 70% of the first wave of projects in 2004 were ushered in by joint ventures with ExxonMobil, Shell and Mitsubishi followed by newcomers Chevron Phillips, Sumitomo, Basell and Acetex. 2004 alone saw the production of over 34 million tons of petrochemicals by 15 industrial plants. Examining the industry's growth pattern, Saudi Arabia's share of petrochemicals will represent about 13% of world capacity by 2009. Of the 59 petrochemicals projects in hydrocarbon sub-sectors, 74% are green field projects.
Saudi Arabia continues to gear up to be the world's first choice for petrochemicals and production as well as the best choice for investment in the sector.
24-Oct-05 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}