2013 outlook of the GCC petrochemicals sector

1. 20 Industry Outlook
Industry Outlook: Exclusive analysis by GPCA
2013 GCC Petrochemicals
Sector Outlook
Nora Ismagilova of the GPCA says in 2013 of the total GCC petrochemicals growth rate which was 7%. Qatar
capacity. With new capacity addi- is the second largest producer in
the GCC producers will add 6.9 million tions in the GCC, Saudi Arabia’s the region continuing to account
tonnes of petrochemical capacity driven by share in the regional petrochemi- for 13% of the total GCC capacity.
Saudi Arabia and the UAE accounting for cals capacity in 2013 is expected By the end of 2013, petrochem-
50.7% and 29.4% of capacity additions to decline marginally by 1% com- icals capacity in Qatar is expected
pared with 2012. to reach 18.2 million tonnes per
T
Petrochemicals capacity in Sau- annum up by 8% from the pre-
he gobal petro- the regional capacity additions. di Arabia is expected to reach 89.9 vious year. 2013 year-on-year
chemicals sector is In 2013, Saudi Arabia is ex- million tonnes per annum by the growth of 8% in Qatar is signifi-
expected to grow pected to continue being the end of 2013 which represent an cantly higher than in the previ-
by 3.6% in 2013, largest petrochemicals producer increase of 4% on YoY basis. This ous year when it grew by 1% only.
which is an in- in the region accounting for 67% growth rate is lower than 2012 UAE is expected to add 2 million
crease from 1.2% growth in 2012 tonnes of additional capacity in
(American Chemicals Council 2013, which will bring petro-
estimations). The most rapid chemicals capacity in the UAE to
growth of the chemicals industry 8.1 million tonnes.
in the following year will occur As a result of new capacity, ad-
in the emerging nations of Asia- ditional share of the UAE in the
Pacific growing by 6.8% and regional petrochemicals capac-
Africa and Middle East growing ity will increase by 1% from 2012
by 4.7% in 2013. In contrast, the level to 6% in 2013. Year-on-year
output of petrochemicals sector petrochemicals capacity growth
in Western Europe and North of 33% in 2013 in the UAE is
America are expected to grow the highest in the region outpac-
by 0.9% and 3.9% respectively. ing by far the regional capacity
For the petrochemicals industry growth of 5%. Similarly, Kuwait
in the GCC, it is forecasted that accounts for 6% of the regional
regional producers will grow by petrochemicals capacity in 2013.
5.4% in 2013, reaching 134.7 mil- Share of Oman in the regional pet-
lion tonnes per annum. rochemicals capacity is expected to
In total, GCC producers are ex- remain through 2013 at 7% or 9.5
pected to add 6.9 million tonnes of
petrochemicals capacity in 2013.
“GCC petrochemicals
The majority of added capac-
sector continues to
ity will take place in Saudi Arabia
representing 50.7% of the capacity
outperform other
additions in the region in 2013, fol- regions with 5.4% growth
lowed by the UAE which accounts forecast in 2013”
for 29.4% of the regional added ca- Dr. abdulwahab al-
pacity. Capacity additions in Qatar sadoun, secretary
are expected to represent 19.5% of Dr. Abdulwahab Al-Sadoun, secretary-general of the GPCA. general, GPCA
Refining & Petrochemicals Middle East February 2013 www.arabianoilandgas.com

2. Industry Outlook 21
140%
GCC Petrochemicals Capacity Growth by Product Group, 2012 and 2013
130%
120%
2012 2013
60%
35%
40%
12% 15%
20%
5% 4% 6%
2% 3% 3% 2%
0%
0%
Specialties Fertilizers Polymer Intermediate Chemical Basic
Source: GPCA Petrochemicals Database, October 2012
2012 GCC gradually decreasing – in 2013
Kuwait Bahrain Petrochemicals GCC capacity basic petrochemicals share in
6% 1%
UAE Capacity In 2013, GCC petrochemicals the total petrochemicals capacity
5% Mix capacity will reach 134.7 million
is expected to decrease by 1.3%.
tpa, up by 5% in comparison with
Oman previous year. Fertilizers represent the second
7% largest product group in the GCC
Saudi Arabia and Qatar continue petrochemicals sector.
to be the largest producers in the With demand for fertilizers
region, however capacity
increasing, GCC producers are
additions in the UAE, namely by
127.8 mt building up their capacities to
Qatar Borouge, continue to enhance the
13% UAE’s position in the region. fulfill this demand. In 2013,
share of fertilizers in the total
petrochemicals will increase
Saudi Arabia
68%
million tonnes. From the indus- by 1.4% to 30.8 million tonnes.
try’s products portfolio perspec- Growth of the GCC polymers ca-
tive, 2013 will not bring along a pacity was one of the strongest
significant change. among other products over the
Over the past years, one-third past years.
of the petrochemicals products Share of polymers in the to-
produced in the GCC have been tal petrochemicals capacity rose
basic petrochemicals. By the end from 15.2% five years ago to
2013 GCC Kuwait
6%
Bahrain
1%
of 2013, basic petrochemicals 18.5% in 2013. Share of chemi-
Petrochemicals UAE capacity in the GCC will account cals and intermediate products
6%
Capacity for 36.6%. While continuing to continues to be on the same
Mix Oman account for the major share, it is level in 2013.
7%
Nora Ismagilova is the research
and studies officers at the GPCA.
If you have any questions please
134.7 mt
Qatar contact nora@gpca.org.ae.
13% The Gulf Petrochemicals and
Chemicals Association (GPCA)
is the voice of the industry in the
region. Established as a non-profit
Saudi Arabia organization in March 2006, it is
Source: GPCA Petrochemicals
67% the first trade association in the
Database, December 2012 Gulf and the largest association
representing the downstream.
www.arabianoilandgas.com Refining & Petrochemicals Middle East February 2013