Oct 26 2010
Research and Markets has announced the addition of the "United Arab Emirates Petrochemicals Report Q4 2010" report to their offering.
The United Arab Emirates Petrochemicals Report provides industry professionals and strategists, corporate analysts, petrochemical associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the United Arab Emirates' petrochemicals industry.
The expansion of the Borouge complex in 2010 is prompting a massive increase in petrochemicals capacities in Abu Dhabi, but to overcome the effects of slower demand growth in China on prices and margins and add value to chemicals output, the UAE will need to focus its attention on expanding its downstream plastic conversion industry, according to BMIs latest report.
The second phase of the Borouge complex at Ruwais, Abu Dhabi, began production in mid-2010 with a 540,000tpa PE unit coming onstream in July. In Q410, an olefins conversion unit producing 752,000tpa propylene, which together with 50,000tpa of propylene delivered from Adnocs refinery, will be used to feed the two Borstar PP units with combined capacity of 800,000tpa. Borouge 2 will triple Borouges polyolefins capacity to 2mn tpa when it becomes fully operational. An additional 2.5mn tpa is scheduled online in 2013, following the completion of Borouge 3. The new capacity will be marketed mainly to the Middle East and Asia Pacific, targeting high-end applications in the pipe and high performance packaging areas. This will be followed in 2013 by a third stage, Borouge 3, which will have capacities of 1.43mn tpa PE and 960,000tpa PP supplied by a 1.5tpa ethane cracker, with US$4.6bn worth of construction contracts signed in Q210.
With domestic demand likely to continue to outstrip supply, China will remain a net polymers importer over the medium term and the largest importer in the world. By 2014, China could represent 35% of the global PP market and 20% of global PE demand. However, China will become increasingly selfsufficient. In terms of polymer capacities, we forecast a 1.65mn tpa increase in Chinese PE capacity and a 1.49mn tpa increase in PP in 2010, ensuring polymer market self-sufficiency should approach 75% PE and exceed 100% PP. Consequently, the Emirati industry will require an expansion of the domestic and regional plastics conversion industry.
The Gulf Co-operation Council (GCC) accounts for just 2% of the global plastics conversion market, but annual growth is expected to reach 9-11%, making it one of the fastest growing regions over the medium term. According to Saudi Arabias Sabic, GCC consumption of plastics has grown from 19 kg per capita in 2000 to 39 kg per capita in 2010 and should reach the kind of levels seen in a developed market like Japan by 2020. Packaging is the fastest growing segment, followed by construction and wire and cable.
Key Topics Covered:
- Executive Summary
- SWOT Analysis
- Global Overview
- Petrochemicals Market Overview
- Financial Results
- Company Profiles
- Country Snapshot: UAE Demographic Data
- Glossary Of Terms
Companies Mentioned:
- Abu Dhabi Fertilizer Industries (Adfert)
- Abu Dhabi National Oil Company (Adnoc)
- Abu Dhabi Polymers (Borouge)