S Arabia to have 20% of global petchem capacity by 2010

29 September 2005 15:16  [Source: ICIS news]

LONDON (ICIS news)--Saudi Arabia's petrochemical industry will account for 20% of global petrochemicals capacity by 2010, Sabic’s chief financial officer Mutlaq Al Morished said on Thursday.

The kingdom will be the hub for the petrochemical industry among the Gulf Cooperation Council (GCC) countries, Al Morished added.

"The picture will change with the gas situation in the US,” he said, predicting a future where industries in the US and also in western Europe will become increasingly dependent on gas supplies from the Middle East.

Speaking at meeting on Saudi Arabian petrochemicals investment strategy organised by the Saudi Chambers of Commerce and Industry, he said investment in numerous projects totaling $20bn (Euro17bn) by 2008 would help the kingdom attain its goals.

For example, Sabic's YanSab complex due to start up in 2008 will produce 3.8m tonne/year of ethylene, ethylene glycol (EG), polyethylene (PE) and polypropylene (PP). Sabic affiliate Sharq will produce 2.9m tonne/year ethylene, polyethylene and ethylene glycol from its plants planned for start-up in 2008.

Al Morished said the investments in glycols capacity would make Sabic the largest producer in the world, overtaking US-headquartered Dow Chemical.

Sabic recorded first half earnings before interest, tax, depreciation and amortisation (EBITDA) of $17.6bn (Euro14.6bn) in 2005, with an EBITDA margin of 47.45%. 

By: Hilde Ovrebekk
+44 20 8652 3214

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