GCC Petrochemical Revenues Reach $89.4bn In 2013

Revenue earned by the GCC’s petrochemical industry amounted to $89.4 billion in 2013, according to the latest report by Gulf Petrochemicals & Chemicals Association (GPCA).

Petrochemical revenues from the region grew by $6 billion between 2012 and 2013, increasing 7.3 per cent, the organisation said.

“2013 marked a turning point for the worldwide chemicals industry, signalling a return from the global economic downturn,” said Abdulwahab Al- Sadoun, secretary general, GPCA.

“And as the region with the second highest rate of sales growth, the GCC has demonstrated that its petrochemicals industry can compete with sector leaders.”

Chemical sales revenue from the Arabian Gulf is the second highest of any petrochemical producing region, after Asia.

Saudi Arabia, the region’s largest petrochemical producer, accounted for 74.9 per cent of the region’s chemical revenue, roughly $66.9billion in sales. Meanwhile, Qatar’s chemical industry generated $11.5 billion in sales.

Although analysts have forecast a positive outlook for the petrochemical industry, the GPCA cautioned firms against being complacent.

“While the emergence of favourably priced feedstock– an advantage that the GCC chemicals producers have enjoyed over the 30 years– becomes available in other regions as shale oil and gas becomes commonplace, we as an industry need to focus on innovation,” said Al- Sadoun.

“Growth is assured, but we also need to transform our operations in a way that will make us relevant and profitable 10, 20, 30 years from now.”

The Middle East makes up 13 per cent of the world’s primary petrochemicals production growing in capacity by 5.5 per cent in 2012 to reach 127.8 million tonnes, compared to 2.6 per cent in the global industry.

Saudi Arabia led the industry, accounting for 86.4 million tonnes per annum (mtpa), while Qatar produced 16.8 million tonnes and Oman 9.5 mtpa, together forming 88 per cent of the Gulf industry. The UAE makes up roughly five per cent of the regional industry with total capacity of 6.1 mtpa.

Analysts expect the region’s petrochemicals capacity to reach 191.2 million tonnes by 2020, led by Saudi Arabia, adding 40.6 million tonnes during the period and Qatar and the UAE adding 10 million tonnes and 8.3 million tonnes, respectively.