DUBAI, 30 March 2004 — The ethylene capacity in the Middle East has grown from 3.9 million metric tons (MT), or 5.4 percent of the global capacity in 1993 to 9 percent of the global capacity in 2003. The capacity could go up to 18 million MT or around 15 percent of global capacity by 2010, according to Fahad S. Al-Sheaibi, vice president PVC & Polyesters, SABIC, who addressed the opening session of the Dubai Plast Pro 2004.
Sheaibi told the delegates from 36 countries that SABIC’s production at the end of 2003 stood at 42.3 million MT and was projected to reach 60 million MT by 2008.
He stressed that he region is the first choice for investments in new petrochemical production units.
In order to achieve economies of scale and be able to thwart competition, he also urged the plastic producers of the region to form a Middle East Plastic Association, so as to pool their resources and capabilities and expertise. Other speakers at the three-day conference organized by the Switzerland based Maack Business Services, also urged the local producers to pool their resources.
Saudi Arabia is the third largest global ethylene producer, he commented. No other regional producer is among the top 20 global producers. Ethylene is the building block for a number of petrochemicals. He added that Iran’s capacity is expected to touch 3.8 million MT by 2006.
The producers in the region are looking toward the Chinese market for exporting the bulk of this surplus, he emphasized. By 2005, the Chinese polyethylene deficit was expected to touch 4.5 million metric tons.