15 December 2011 08:57 [Source: ICIS news]
DUBAI (ICIS)--Petrochemicals production capacity in Gulf Cooperation Council (GCC) countries is projected to grow to 134m tonnes by 2016, up from 101m tonnes in 2010, as industry moves into high-value chemicals, GPCA general secretary Abdulwahab Al-Sadoun said on Thursday.
The growth rate of the new capacity additions in the GCC, however, will slow to an average of around 6.8% a year through to 2016, compared with 10.8% in 2005-2010, Al-Sadoun said.
Al-Sadoun was speaking at the 6th GPCA conference being held in ?xml:namespace>
Some 5.75m tonnes/year of new ethylene capacity is expected to come on stream in the GCC by 2016, accounting for 45% of new overall basic chemicals capacity worldwide, he said.
Meanwhile, petrochemical capacity will increase globally from now through to 2014, and the Gulf region is expected to account for over 40% of incremental global capacity additions in that time period; and over 30% of global trade in ethylene derivatives, Al-Sadoun said.
The industry’s next growth phase will add 22 new high-value chemicals such as performance chemicals, which will be produced for the first time in the Gulf region, he said.
“The production of these new chemicals and their conversion into semi-finished and finished products will result in capturing the value that is currently captured by the region’s export customers, leading in turn to more sustainable growth for the industry through building local production capabilities and establishing new export opportunities,” Al-Sadoun said.
Expansion into downstream industries present Gulf petrochemical players with benefits that include maintaining growth into less cyclical product base, providing more stable returns over the long term, and capturing further value through the production of high margin products, he added.
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