27 November 2012 12:56 [Source: ICIS news]
DUBAI (ICIS)--The increased use of gas for water desalinisation and power generation will affect the petrochemical industry’s growth in the Middle East, Mohamed Al-Mady, vice chairman and chief executive of SABIC, said on Tuesday.
“It (the petrochemical industry) will continue to grow, but probably not at the same rate as in the past because there are a lot of competing initiatives now that will affect future growth,” he said.
“The industry will have to compete with desalinisation plants and power companies for the raw material (gas),” he told ICIS on the sidelines of the seventh annual GPCA (Gulf Petrochemicals & Chemicals Association) conference that is being held in Dubai on 27-29 November.
“And I think this is going to bite into the growth of [the] petrochemicals industry,” he added.
However, he said the petrochemical industry will “invent ourselves” by finding new technologies, going global and by adding value to the existing raw materials.
He also cited the exploitation of shale gas as giving some alternate feedstock to the petrochemical industry.
“So I think that there will be growth, but some of this growth will be impacted at the expense of water and power,” he added.
Looking into the future and the possibility of any further recession, Al-Mady said there were some good signs emerging.
“I do not think that there will be a recession. 2011 has been a good year. 2012 has not been a bad year either,” Al-Mady said.
“The situation in Europe has stabilised somewhat. The US is not in a bad shape and China is beginning to improve, so I think the situation [in the future] will be similar to 2012.”
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