GCC petrochemical industry grows

The Gulf Petrochemicals and Chemicals Association (GPCA) has released its 2011annual report showing the GCC sector continuing to strengthen its position globally. Regional petrochemicals production capacity grew by 13.5 per cent last year, according to the report, to nearly 116 billion tons, up from 102 billion tons in 2010, on the back of further expansion of manufacturing facilities. On the fertilizer sector, 2011 was an historic milestone for Qatar, as Qatar Fertilizer Company (QAFCO) inaugurated its fifth expansion in December 2011, making the company the world’s largest single-site producer of ammonia, having already taken the urea production crown with QAFCO 4 in 2004. QAFCO 5 increases the total production capacity of the company to 3.6 million TPA of ammonia, and 4.2 million TPA of urea. "Continued investment and a cluster of significant new agreements demonstrate the leading role the GCC petrochemicals sector is now playing worldwide," said Dr. Abdulwahab Al-Sadoun, Secretary General of the GPCA. He added: "We are optimistic about 2012,despite the gloomy economic forecast in European and overseas markets,due to the continued focus on technology, innovation and long-term partnerships." "The entry of industry leaders such as Kuwait Petroleum Corporation and SABIC into China through the signing of large-scale petrochemicals joint ventures is another positive trend for the GCC sector," he added. Saudi Arabia alone accounted for more than half of the US$100 billion in sales generated by the GCC petrochemicals sector, according to the report. The report describes 2011 as a year of consolidation after the demand slump caused by the 2008 economic downturn,with the industry recording sales and revenue growth and notable progress in the development of new projects. The GPCA annual report provides a comprehensive overview of the major sector developments in each of the Gulf states. (QNA)