Two Major Qatari Ventures Among Major GCC Chemical Projects Expected To Start-Up In Five Years: GPCA

2/19/2023 2:00:42 PM

(MENAFN- Gulf Times) Ras Laffan Petrochemicals Complex and Qafco Ammonia 7 project are among the major chemical projects expected to start-up in the GCC over the next five years, GPCA said in its latest report.
A QatarEnergy-Chevron Phillips Chemical joint venture, the Ras Laffan Petrochemicals Complex with a capacity to produce 2.1mn tonnes per year of ethylene, is slated for completion in 2026.
Qafco's Ammonia 7 project will have the capacity to produce 1.2mn tonnes per year of blue ammonia and is slated for completion in 2026, Gulf Petrochemicals and Chemicals Association noted.
GCC's chemical industry has planned or committed investments worth $61bn until 2025 despite“considerable reduction” in global investment.
GCC chemical producers continued to invest in environmentally responsible projects as part of their ESG agenda, mainly in energy efficiency and air pollution in 2021, Gulf Petrochemicals and Chemicals Association (GPCA) said.
The GCC's share in global chemical revenue has increased to 2.4% in 2021, almost reaching the historical average.
However, the GCC chemical industry's capital investments reduced by more than half to $4bn in 2021 as companies are rationalising their investments post-pandemic, putting many projects on hold, and prioritising recovery, while others are coming close to completion.
GPCA said strong demand for both commodity and specialty chemicals had kept prices robust throughout 2022 as well.
Although the GCC chemical industry is export-oriented, exporting 68.8mn tonnes in 2021, the region imported 20mn tonnes resulting in a positive trade balance of 48.6mn, up by 12% Y-o-Y.
China and India remain the top destinations for GCC chemical exports, accounting for 26% and 14%, respectively, of total exports. Petrochemicals and polymers dominate GCC chemical exports, while value added chemicals are the top imported chemicals into the region.
The overall chemical production in the GCC grew further by 2.7% in 2021, recording a 154.1mn tonnes capacity, driven by the rebound in demand for goods around the world, GPCA noted.
The regional historical growth is led by inorganic chemicals, and performance polymers and rubbers with a nine-year Compound Annual Growth Rate (CAGR) of 45.1% and 17.8%, respectively. The positive overall capacity growth momentum has been forecast to moderate slightly to 2.5% in 2022.
Global chemical output is recovering unevenly across geographies with an overall percentage of 6.1% in 2021. The projected growth is headed by Asia at 7.6%, followed by Europe and South America at both 6% and 4.6%, respectively.
“It is estimated to grow by a lower rate of 2% and 2.9% in 2022 and 2023 respectively, taking into consideration the ongoing lockdowns in China, as well as direct and indirect supply chain disruptions caused by the Russian invasion of Ukraine,” GPCA noted.

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