GCC petchems output rises by 4.5% in 2014 – GPCA

SINGAPORE (ICIS)–Petrochemicals production in the Gulf Cooperation Council (GCC) rose by 4.5% year on year in 2014 on the back of the surge in plastic output, the Gulf Petrochemicals and Chemicals Association’s (GPCA) said late on Monday.

This is the second highest growth rate in the world, with global production of chemicals rising by 2.8% year on year in 2014, the GPCA said in its Annual Report 2014.

Plastic output in the GCC rose by 6% year on year year in 2014, according to the GPCA.

“While production growth is certainly a positive development, GCC chemicals producers must not rest on their laurels,” said Abdulwahab Al-Sadoun the GPCA’s secretary general.

“The petrochemicals sector is tied into global economic trends and demographic demand, meaning that we in the Arabian Gulf could be affected by developments from around the world,” Al-Sadoun said.

Producers in the GCC are now not only expanding production capacities but are also capturing value-added opportunities, according to Al-Sadoun.

“As Sadara formally comes on-stream this year, 14 of the 26 units operated by the company will manufacture products that have never been produced in the Arabian Gulf, signalling that an era of diversification is imminent,” he added.

A $20bn investment, Sadara will be the first chemical complex in the GCC [Gulf Cooperation Council] area to use refinery liquids such as naphtha as feedstock.

A mixed-feedstock producer, Sadara will also use natural gas liquids (NGL) as raw material for some its products.

Based in Jubail Industrial City, the complex will include a 1.5m tonne/year cracker and 26 new plants. Of those 14 will be introduced for the first time in Saudi Arabia, including polyolefin elastomers, isocyanates and polyols plants.