In the Middle East, there was a third wave expansion of petrochemicals. Chemicals and plastics will account for the biggest share in the growth of global crude demand by 2030. Assets in the petroleum industries will be a serious factor for increasing the demand for markets of oil in the coming years.
Technologically advanced economies use more plastic and fertilizer than emerging nations on the basis of every person, highlighting the wide potential for the growth globally. International Energy Agency assumes petrochemicals to be responsible for the growth of worldwide oil demand.
On the other hand, plastics and chemicals have become filthy words for lots of customers, with the developing international campaign acquiring momentum to restrict the solitary use of products such as cups and bottles. In spite of the ecological backlash especially in South Korea, Japan and Europe that have increased the efforts of recycling, S&P global Platts Analytics anticipates value for the material and the related materials to be on the growth trajectory.
Jennifer Van Dinter, Platts Analytics commented that “Petchems and plastics demand is highly correlated to population and GDP growth”. “Currently, the focus in the petchem market is targeting economic growth in India and China and carrying western development trends to those economies.”
Producers of Middle East petrochemicals are competing to swell. Saudi Arabia is the largest producer in the region. In the past months, Saudi Aramco revealed a contract with France’s Total and South Korea’s Daelim to build new more than 80,000 tonnes every year polyisobutylene plant in the forecast period and this product is used for lubricants and adhesives.
Aramco is the third largest producer of petrochemicals in the world. Total and Aramco are deciding to develop a huge complex of petrochemicals in Jubail, subsequent to the refinery of Satorp using more than 1.5 million tonnes every year of ethylene, important for the packaging of plastic. The upstream giant of a state is functioning with Sabic on other projects to transform crude oils to chemicals on the eastern Red Sea coast at Yanbu.
The sultanate is capitalizing extensively to develop a combined petrochemicals and refining hub in the port of Duqm, in Oman. Duqm refinery is a joint project between Oman Oil Company and Kuwait Petroleum International including the complex of petrochemicals. In the meantime, state-owned Kuwait Petroleum Corporation is observing the expansion of the petrochemicals industry. The company is thinking over a capable petrochemicals complex, known as Olefins-4 for plastics production. The project will add the capacity of KPC’s petrochemicals on uppermost of Aromatics-2 and Olefins-3, built at the refinery of AI-Zour.
Ms. Van Dinter, Global Analytics from S&P claims “The Middle East (advantaged supply) and China and India (demand) are leading the way for oil-to-petchems refineries and projects”. Ms. Van Dinter even claimed that
“The North American petrochemicals complex has put significant investment dollars behind the ethylene value chain (which goes to making plastics among other products) in the form of ethane-fed steam crackers”.