GCC petrochemicals output grows despite global slowdown: GPCA

10 June 2013 08:29  [Source: ICIS news]

GCC petrochemicals output grows despite global slowdownDUBAI (ICIS)--Petrochemicals production in the Gulf Cooperation Council (GCC) increased by 5.5% in 2012, despite a slowdown in global markets due to the recession in Europe, the Gulf Petrochemicals and Chemicals Association’s (GPCA) said in its annual report, issued on 10 June.

The GCC’s petrochemicals production capacity rose to 127.8m tonnes in 2012, up from 121.1m tonnes in 2011.

In 2012, global petrochemicals production grew 2.6%, lower than the 3.8% growth rate in 2011, the report said.

Saudi Arabia accounts for over half the GCC’s total petrochemicals output with a capacity of 86.4m tonnes. An estimated 6m tonnes of capacity came on stream in 2012, cementing the country’s position as the region’s leading petrochemicals producer.

With 6.1m tonnes, petrochemicals production in the United Arab Emirate (UAE) currently accounts for 4.8% of the total regional capacity, it added.

“As a host of major projects come on line, along with a collection of significant new agreements, the GCC petrochemicals industry has demonstrated its potential as a market leader over the last year,” said Abdulwahab Al-Sadoun, secretary general, GPCA.

“We are optimistic about the future. Industry growth will transform the petrochemicals sector into one that is focused on technology, sustainability and enduring partnerships,” Al-Sadoun added.

In 2012, the UAE continued its strategic expansion by awarding contracts for several key downstream projects in Abu Dhabi.

Abu Dhabi Oil Refining Co (Takreer) was awarded a contract to build a carbon black and delayed coker plant in Ruwais.

The plant is expected to be completed in 2015. It will have an annual production capacity of 40,000 tonnes of carbon black, 430,000 tonnes of anode grade coke and 520,000 tonnes of propylene.

Also in the pipeline is Abu Dhabi’s Tacaamol complex, which is being developed under the supervision of ChemaWEyaat.

The project will convert over 3m tonnes/year of naphtha to produce paraxylene (PX), mixed xylenes and benzene.

By: Aamir Ashraf

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