The growing petrochem industry in the GCC

24-Oct-05

Abundant and competitively priced gas in the Gulf region coupled with the availability of long-term finance seeking investment opportunities, have triggered the robust growth of the petrochem sector in the Gulf. The niche sector has grown from zero output in 1975 and has majorly benefited from slowdown in production in the West. The GCC is estimated to account for up to 20% of the world's ethylene capacity by 2010. The petrochemicals industry in the region has changed dramatically over the last 10 years. In 2004, liquid chemical exports from the GCC and Iran were less than 17 million tons. In 2008, experts predict a rise to almost 50 million tons. Iran aims to double plastics production capacity well before 2010. Qatar plans for ethylene production to rise to about 6 million tons in 2011, with 4 new crackers coming on stream. Kuwait is implementing a massive expansion program. Borouge is more than doubling capacity in Abu Dhabi A fully integrated petrochemicals project has been unveiled in Bahrain. Oman has 5 new petrochem projects in development and plans to invest in Iran. Sabic is already the world's third largest producer of polyethylene and the fourth largest manufacturer of polymers of all kinds. It is investing more than US$8,000 million to raise total output of all products to 60 million tons.