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Petrochemicals
Boost in R&D for GCC petrochemical market GCC PETROCHEMICAL PRODUCERS are ramping up research and development (R&D) funding despite a global slowdown in investments, according to an official from the Gulf Petrochemicals & Chemicals Association (GPCA). The need for research was the key focus of discussion at the recent Research & Innovation Summit, hosted by the GPCA. Local and international industry leaders and executives, including GPCA chairman and CEO of SABIC Mohammed Al Mady, provided insights on the subject. Moayyed Al Qurtas, chairman of GPCA’s Chairman of GPCA’s Research and Innovation Research and Innovation Committee, said, Committee, Moayyed Al Qurtas “Chemical companies in the Gulf are pioneers in the Middle East when it comes to building research and development facilities “While the region’s petrochemicals industry may spend a fraction on research compared to global investment, the GCC has among the highest year on year growth rates in R&D expenditure in the world.” Petrochemicals represent the second largest manufacturing sector in the Gulf, according to the GPCA. The Gulf’s petrochemicals output reached US$97.3bn in 2012, a $3.2bn increase on the previous year. The industry is also export oriented, with petrochemicals accounting for $52.7bn in 2012. In 2012, GCC chemical producers spent an estimated $380mn on R&D initiatives, just 0.8 per cent of the global R&D spending. However, the 2012 figure also highlighted a 30 per cent growth in investments as GCC petrochemicals producers spent $266mn on R&D in 2011. With global R&D expenditure rising by just 10 per cent in the same period, it is clear to see the Gulf’s increasing focus on this sector. GCC petrochemical companies have already stepped up efforts in developing R&D facilities with Tasnee and SABIC launching products development research centres in the recent past. Sipchem in Saudi Arabia, and Borouge in the UAE, are also set to open their own facilities in the near future. “Moving forward, petrochemical research centres focusing on the performance products are set to become more common in the GCC,” Qurtas added.
New US$850 million Jebel Ali port terminal to feed growing petrochemical demand IN VIEW OF the rising demand for Jebel Ali port is launching a third US$850mn petrochemicals exports, the UAE’s Jebel Ali third terminal (image source: RmontalbanA) port is set to welcome a new US$850mn terminal which will boost its annual container ships handling capacity by 27 per cent. Officials will open the modern third terminal facility for container ships by July and plan for it to be fully operational by the end of 2014. Considering the upcoming Dubai Expo 2020 and the 2022 Word Cup in Qatar, as well as the ever-growing energy demand in and around the Gulf, the rate of petrochemical exports from the UAE port is increasing. DP World’s senior vice-president and managing director Mohammed Al Muallem said, “We are gearing up to expand our containers handling capacity because exports of petrochemicals are on the rise and import deliveries [into the Gulf] are also expected to increase as infrastructure projects are taken up for the Dubai Expo and football world cup in Qatar.” The UAE’s polymer output has tripled over the last five years and reached an estimated 25mn mt in 2012. Al Muallem commented, “We saw a three per cent growth in container ships volume handled at the port last year and the traffic is rising in tandem with the jump in petrochemicals output in the region.” He added that port development contracts worth more than $36bn and $30bn of industrial, petrochemical and infrastructure projects are currently being implemented in the GCC countries.
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Issue 3 2014
Iranian petrochemical exports set to reach US$12 billion AS DISCUSSIONS REGARDING easing the US sanctions on Iran continue, the Islamic republic plans to see its petrochemical exports rise to US$12bn over the next Iranian calendar year, which began on 21 March. Hossein Shahriyari, Iran’s National Petrochemical Company’s (NPC) director for planning and development department, announced that the country’s petrochemical sector holds significant investment and development opportunities that it plans to take harness. “Iran will increase the value of its petrochemical exports to the level of $12bn,” he said. “In recent years, the domestic sales of petrochemical products have increased considerably, and with the implementation of the new development projects, the petrochemicals production capacity will rise significantly.”
The NPC wants to launch petrochemical projects across Iran. (Image source: ljmacphee) A report by Iran Customs Administration released in January revealed that Iran exported approximately $8bn worth of petrochemicals in the period between March to November 2013, with China, Iraq, the UAE, and India being its key customers. In order to take full advantage of the opportunities available in the country’s petrochemical sector and boost the production capacity, Iran has implemented numerous development projects. According to NPC deputy executive manager Mohammad Hassan Peyvandi, Iran is planning an expansion of petrochemical projects in the country’s western provinces this year. As well as the provinces Lorestan and Kurdestan, the NPC is looking to the city of Mahabad as locations to launch a number of projects. Peyvandi has also confirmed that the company will be completing the 1,500km West Ethylene pipeline this year, which will carry feedstock to petrochemical plants in the south and north-western reaches of Iran.