Middle East to be world C3 player - consultant

27 March 2008 17:09  [Source: ICIS news]

HOUSTON (ICIS news)--The Middle East is set to become a significant propylene (C3) player for the first time with net exports reaching 4.6m tonnes by 2012, an industry consultant said on Thursday.

“The capacity additions will be concentrated in Saudi Arabia where over 4m tonnes/year will be brought on-stream in 2008-2009 alone,” said Tony Potter, CMAI director - olefins studies Europe, Middle East and Africa.

The new propylene in Saudi Arabia will include significant volumes of steam cracker coproduct as the new cracker feedstocks will also include propane and butane, Potter said at the CMAI World Petrochemical conference here. However, more than half will be produced by propane dehydrogenation, metathesis and high severity fluid catalytic cracking.

In other Middle East countries, the world’s largest metathesis unit is being built by Borouge in Abu Dhabi for 2010 start-up. Further metathesis capacity is expected in Qatar in 2012, Potter said.

In Iran, new propylene capacity will be from the Jam cracker while Egypt’s Oriental Petrochemicals is building an integrated propane dehydrogenation/polypropylene facility for 2010 start-up.

The Middle East/Africa region will increase its global share of propylene capacity from 6% in 2007 to 13% in 2012. Around 8.6m tonnes/year of additional capacity will be built, almost tripling current capacity, Potter explained.

The evolving propylene business is export orientated as derivatives, mainly polypropylene (PP). In 2008, the Middle East will become a net exporter although Saudi Arabia, Kuwait and Oman are already exporters. The region definition includes Turkey, a large importer of PP.

Potter concluded that Europe will revert to becoming a net importer of propylene derivatives while North America net export position will erode to a significant degree. Asia’s net import position increases.

For more on propylene visit ICIS Chemical Intelligence

By: Peter Taffe
+44 20 8652 3214

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