27 November 2012 11:56 [Source: ICIS news]
DUBAI (ICIS)--Growing inter-dependence between Gulf Cooperation Council (GCC) countries and the strengthening demand in Asia is spurring investment in petrochemicals in the Middle East, an industry consultant said on Tuesday.
“It is clear that there is growing inter-dependence between these two regions,” Andrew Spiers, senior vice president of Asia at consulting firm Nexant, said in the seventh annual GPCA (Gulf Petrochemicals and Chemicals Association) forum being held in Dubai on 27-29 November.
There will be a deficit in Asia so there is opportunity to invest in the Middle East to supply commodity chemicals to Asia, he said.
Asian companies will also be looking to invest in the GCC region for feedstock advantages.
Similarly, he said Middle Eastern companies will be taking hydrocarbons to Asian countries and making investments to produce derivative chemicals for consumption there.
Spiers said he saw a steady stream of such investments taking place in the future.
An industry executive said after the presentation that it was natural for this inter-dependence to grow as Asia offers huge consumer opportunities because of the large population there as opposed to the GCC region, which has a relatively smaller consumer market.
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