Petchem, energy needs must balance - Al-Attiyah

03 December 2008 11:31  [Source: ICIS news]

DUBAI (ICIS news)--Balancing petrochemical feedstock and energy needs is a big challenge in the Middle East, said Abdullah bin Hamad al-Attiyah, deputy premier, minister of energy and industry and chairman and Qatar Petroleum, on Wednesday.

“Growing demand of petrochemical usage in our daily life is putting tremendous pressure on feedstock supply in the region,” he said at the 3rd Gulf Petrochemical and Chemicals Association (GPCA) forum.

The Middle East was likely to face significant challenge in terms of accessing traditional sources of feedstock and developing new ones, he added.

Al-Attiyah also cited additional pressure for more energy efficient transportation and increasing use of petrochemical-derived materials for insulation as a means of reducing energy demands.

“Today, most of the industry analysts suggest, the petrochemical and chemical industry is approaching a period of overcapacity that is accompanied by weaker markets,” he said.

He highlighted other challenges facing the Middle East petrochemical industry - including increasing global competitiveness, changes in the energy markets, economic growth and cyclicality and geopolitical and environmental issues.

“The petrochemical industry has overcome the difficult situations many times in the past considering the cyclical nature of this industry but has worked through them successfully and emerged stronger,” Al-Attiyah added.

The three-day GPCA forum ends on 4 December.

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By: Bohan Loh
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