Mideast ethylene production to double
Dubai, December 4, 2007
Production capacity for ethylene in the Middle East will more than double in the next five years, according to a forecast by the Gulf Petrochemicals and Chemicals Association (GPCA).
Ethylene production is expected to rise from over 13 million metric tonnes in 2007 to over 29 million metric tonnes in 2012. This represents nearly half of global capacity growth, GPCA said.
"The world’s largest programme ever for construction of new ethylene plants is taking place in the Middle East," said Mohamed H Al-Mady, chairman of GPCA and CEO of Sabic. Ethylene is the building block of the petrochemicals industry and is supplied from gas in the Middle East at great cost advantage.
The non-pofit organisation also predicts that the Middle East is set to become the epicentre of global petrochemicals manufacturing, essential materials for packaging, healthcare, pipes, electronics goods, personal care, construction, and many other industrial and consumer requirements.
In a statement, the Dubai-headquartered GPCA said that these products were the raw materials for industry around the globe, and much of the new output will be supplied to the booming markets of China and India.
However, oil prices at $100 barrel place considerable burden on the petrochemical industry and the pace of economic activity in important markets such as the US and China may slow next year. Legislative and environmental pressures also continue.
Against this background, leaders of several multinational companies will gather at the second annual GPCA Forum on December 11-13 in Dubai to discuss the global economic outlook in a period of uncertainty.
Some of the important speakers expected at the event include Mukesh Ambani, chairman & managing director, Reliance Industries; Ray Wilcox, president & CEO, Chevron Phillips Chemical Company; Peter Huntsman, CEO, Huntsman Corporation; Stephanie A. Burns, chairman, president & CEO, Dow Corning Corporation; Andrew Liveris, CEO, The Dow Chemical Company; Abdulrahman A. Al-Zamil, director, Al-Zamil Group; Steve Cornell, senior vice president, Middle East & Asia, Total Petrochemicals; Volker Trautz, president & CEO, Basell Polyolefins; Mohamed H. Al-Mady, vice Chairman & CEO, Saudi Basic Industries Corporation (Sabic) and Hamad Al-Terkait, president & CEO, Equate Petrochemical Company (Equate) Kuwait.
GPCA, a non-profit organisation and a regional platform for the petrochemicals and chemicals industry in the Gulf, was created in 2006, with founding members including Saudi Basic Industries Corporation (Sabic), Equate Petrochemical Co., Gulf Petrochemical Industries Co. (GPIC), Petrochemical Industries Co. (PIC), Qatar Petrochemical Co. Ltd. (Qapco), Qatar Vinyl Co. Ltd. (QVC), National Industrialization Company (Tasnee), and Abu Dhabi Polymers Co. Ltd (Borouge).--TradeArabia News Service