Price and market trends: GCC to add 54m tonnes of capacity in five years

29 November 2013 17:04 Source:ICIS Chemical Business

The Gulf Cooperation Council (GCC) region will add 54m tonnes of chemicals production capacity over the next five years, growing at an average of 7.3% annually, partly due to a surge in new fine chemicals and fertilizer capacities, a senior industry official said on 21 November.

The chemicals production capacity in the GCC will grow from 129.2m tonnes/year in 2012 to 183.6m tonnes/year in 2017, Gulf Petrochemicals and Chemicals Association (GPCA) secretary general Abdulwahab Al-Sadoun told delegates at the 8th GPCA Forum in Dubai.

“Due to the shift towards liquid cracking, the highest growth [in capacity] during the next five years will be in the aromatics and the C4 value chain,” Al-Sadoun said.

“Heavier feedstock cracking will enable a more balanced product mix at the basic chemicals level,” he said. Al-Sadoun added that the GCC will witness significant diversification in the industry’s products slate through to 2017.

The number of chemical products produced in the Gulf Cooperation Council will grow from 53 in 2007 to 130 in 2017, according to Al-Sadoun.

By Nurluqman Suratman