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Chemical production capacity in the Gulf Cooperation Council (GCC) region is expected to grow 5.3 percent this year to about 167.3 million tonnes, driven by the new plants that started operations in Saudi Arabia, ICIS reported, citing Abdulwahab Al-Sadoun, secretary general of Gulf Petrochemicals and Chemicals Association (GPCA).
The growth is lower than the 8.5 percent year-on-year (YoY) capacity expansion in 2016, and also from the 6 percent rise recorded in 2015, Al-Sadoun said.
“For the period 2017-2026, we anticipate a modest growth in volume but at the same time the growth in sales revenue is projected to increase due to the drive towards producing specialty and performance chemical by the regional industry,” he said.
Between 2020 and 2024, projects worth $13 billion, and involving 8 million tonne per year in new capacity, are expected to come on stream in the GCC, he added.
This year two major petrochemical complexes in Saudi Arabia – Sadara Chemical complex in Jubail, and PetroRabigh II – started operations.
Among other start-ups are those by Maaden, for ammonia and diammonium phosphate (DAP); by Ibn Sina, for polyacetal; and by Saudi Methacrylates, the SABIC/Mitsubishi joint venture, for methyl methacylate and polymethyl methacrylate.
Also, Saudi Aramco boosted benzene and paraxylene capacity at its Jazan refinery complex.
Meanwhile, chemical consumption in the GCC in 2017 is expected to rise by 5.5 percent to 53.8 million tonnes, with the rate of increase higher than last year, according to Al-Sadoun.
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