Plastics Industry in the Middle East - Increased Focus on Downstream Petrochemicals to Drive the Sector On 8th August 2014
Researcher's new report, "Plastics Industry in the Middle East Increased Focus on Downstream Petrochemicals to Drive the Sector". The study, which is an offering from the companys Petrochemical Research Group, provides an in-depth analysis of the Middle East plastics industry. It explains the reasons which led to the economic diversification of the Middle East countries and explains the benefits to the plastics industry from diversification. It gives the share of oil sector in the respective GDPs and analyzes the strategies adopted by the Middle East petrochemicals industry to achieve growth in downstream plastic resins production. The study also discusses the trade pattern of the Middle East for the downstream petrochemicals. It also explains the reason of increased exports to the Asian countries especially China and provides exports data for major plastics (polyethylene, polypropylene, PET resins, polystyrene and polyvinyl chloride). The study provides the basic petrochemicals (ethylene, propylene, butadiene, benzene, toluene, xylenes and methanol) and major plastics capacity growth in the Middle East. The report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalDatas research team of industry experts. Browse Full Report @ http://www.jsbmarketresearch.com/chemicals/r-Plastics-Industry-in-theMiddle-East-Increased-Focus-on-Downstream-Petrochemicals-to-Drive-the-Sector-114994 The Middle East is exposed to economic instability due to the increased dependence on the oil sector and it has been continuously trying to diversify its sources of income by developing downstream petrochemicals industry. The oil sector contributes to a large portion of the GDP in the Middle East and sudden price fluctuation affects the revenues generated from the sector. Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
To reduce their dependence on the oil sector, countries in the Middle East embarked upon diversification of their economy which led to the foundation of a strong basic petrochemicals (upstream) industry in the start of last decade. Now the region is moving a step ahead and encouraging the downstream petrochemicals industry which will further enhance the plastic resins production. The Middle East already has a large downstream petrochemicals industry and this move will further boost the downstream petrochemical capacity in the region. Diversification drive will also encourage the plastic processing industry which is currently very small and scattered. Capacity for many of the high value plastics such as acrylonitrile butadiene styrene (ABS), ethyl vinyl acetate (EVA) and polycarbonate is also expected to increase in next five years. By 2016, ABS, polycarbonate and EVA capacity in the region will reach to 0.283 million metric tons per annum (MMtpa), 0.285 MMtpa and 0.345 MMtap respectively. The downstream petrochemicals industry in the Middle East will rely on the Asian demand to absorb these petrochemical capacities. Asia and Europe are the two largest plastic resins importer from the Middle East. However, the Middle East producers will target Asian markets due to the higher demand growth in these markets. Asian countries especially China and India are supporting the downstream petrochemicals demand with their fast growing GDPs and large populations. China is already the largest importer of the downstream petrochemical from the Middle East and it is expected to import huge quantities of downstream petrochemicals in the future also. Other major importers of downstream petrochemicals from the Middle East are Singapore, Turkey, Belgium and India. Chinas share in downstream petrochemicals imports is much higher due to the indirect consumption which occurs via Singapore which has established itself as the transshipment hub in the Asian petrochemicals industry. Turkey also imports one third of its downstream petrochemicals from the Middle East. Saudi Arabia and Iran are the two largest petrochemical exporters in the region. Saudi Arabian ethane has the lowest cost in the Middle East region. This feedstock subsidy makes Saudi companies the global low cost producers of downstream petrochemicals. Due to this production and exports of major plastics from Saudi Arabia has increased substantially. Iran has the second largest petrochemicals industry in the region and is growing at a fastest pace. It has the second largest natural gas reserve in the world which provides both energy and petrochemical feedstock to the producers. Both these countries are leading the Middle East downstream diversification drive and continuous government support will help them to enhance their competitiveness in the global downstream petrochemical industry. Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
To take advantage of the downstream diversification drive many companies in the region have taken initiatives. Saudi Aramco and Dow Chemicals Company have entered into a joint venture to establish Sadara Chemical Company which will construct a mega petrochemical complex in Saudi Arabia with various plastics production units. Iran Petrochemical Commercial Company will also benefit from the diversification drive since polymers is the second largest revenue generating segment among all the petrochemicals exporting segments. The Qatar Petrochemical Company has already planned three downstream petrochemical complexes and is has just entered into a JV with Qatar Petroleum to construct polyethylene and polypropylene plants in Ras Laffan.
Scope The report provides an in-depth analysis, market opportunities and challenges for the manufacturers of downstream petrochemicals worldwide. It contains detailed information about plastics production capacities in the major Middle East countries. Its scope includes - Revenues earned by the major Middle East countries from the oil sector and the share of oil sector in the respective exports revenue and GDPs. - Historical and forecasted basic petrochemicals capacity in the Middle East - Basic petrochemicals capacity share of the Middle East - Major plastics capacity by product in the Middle East - Major plastics capacity split by region - Panned plastics capacity in the Middle East countries such as Iran, the UAE, Egypt, Saudi Arabia, and Qatar - Middle East major plastics exports trend and historic imports by major countries such as China, Singapore and Turkey - Middle East share in the major plastic imports of China, Singapore and Turkey - Historic demand and production of the major plastics in Saudi Arabia and Iran
Reasons to buy Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
The report will enhance your decision-making capability in a more rapid and time sensitive manner. It will allow you to - Understand the impact of downstream diversification drive in the Middle East plastics industry - Develop business strategies with the help of specific insights on downstream petrochemicals supply scenario in the Middle East - Identify opportunities in the major Middle East petrochemical industries such as Saudi Arabia, Iran and Qatar - Identify prospective investment targets through updates on active and planned petrochemicals complex in the Middle East - Increase future revenue and profitability with the help of insights on the future opportunities and critical success factors in the Middle East petrochemical industry
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Table of Content 2 Introduction 7 2.1 Overview 7 2.2 GlobalData Report Guidance 8 3 Oil-dependant Middle East Region became the Hub of the Upstream Petrochemical Industry Owing to Feedstock Advantage and Supporting Government Policies 9 3.1 Crude Oil has been the Source of Revenue in the Middle East for Several Decades 9 3.2 Higher Crude Oil Dependency Exposes the Region to Economic Instability 11 3.3 The Middle East Region Embarked Upon Economic Diversification to Reduce the Dependency on Crude Oil 13 3.4 Natural Gas Subsidies by the Governments Facilitated Growth of the Basic Petrochemical Industry and Strengthened Diversification Process 13 3.4.1 Natural Gas Subsidies Encouraged the Middle East Producers to Establish Basic Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
Petrochemical Plants 13 3.4.2 Diversification Process Accelerated with the Basic Petrochemicals Capacity Expansion on a Large Scale 15 3.5 Continuous Government Support has been Instrumental in Elevating the Middle East Petrochemical Industry 18 4 Downstream Plastics Industry is Aligning itself to Take Benefit from Already Established Basic Petrochemical Industry 19 4.1 Prosperous Upstream Industries Created Strong Foundation for the Downstream Petrochemical Industry 19 4.1.1 Huge Oil and Gas Reserves are the Backbone of a Strong Upstream Petrochemical Industry 19 4.1.2 Increased Oil and Gas Production Led to Enhanced Feedstock Availability 21 4.2 Downstream Plastics Industry to Strengthen from the Strong Basic Petrochemical Industry 22 4.2.1 The Middle East Plastics Capacity will Surpass North America Plastics Capacity by 2016 24 4.2.2 Emphasis on Downstream Petrochemicals will Avoid Overcapacity of Basic Petrochemicals 25 4.3 Existing Upstream Petrochemical Producers will Benefit the Most from Vertical Integration 26 4.4 Planned Projects in the Middle East will Further Promote the Plastics Production in the Region 27 5 The Plastics Processing Industry to Benefit Directly from the Diversification Drive 30 5.1 Polymer Parks will Encourage the Processing Industry by Providing Financial Benefits 30 5.1.1 Abu Dhabi Polymer Park is the First of Its Kind to Strengthen Plastics Processing Industry 30 5.1.2 Rabigh Conversion Industrial Park is a Saudi Initiative to Encourage Plastics and Packaging Cluster 31 5.1.3 Plaschem Parks are Being Planned in Yanbu and Jubail in Saudi Arabia 31 5.2 Investment in Value Added Plastic Resins is Expected to Increase in the Future 32 5.3 Downstream Plastics Conversion Units to Provide More Employment Opportunities in the Region 33 6 Downstream Diversification to Target the Major Asian and European Markets 35 6.1 China, Singapore and Turkey are the Largest Export Markets for the Middle East Countries 35 6.2 Chinas Imports from the Middle East have Grown Substantially Due to Strong Demand from the Home Appliances, Packaging and Automotive Sectors 36 6.2.1 Chinese Imports from the Middle East have Grown Five Times in the Last 10 Years 36 6.2.2 Home Appliances Subsidy Scheme Stimulating the Plastics Demand in China 38 6.2.3 Packaging Sector Demand for Plastics is Set to Increase after Recession 38 Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
6.2.4 Increase in Automotive Production will Ensure Higher Plastics Demand 40 6.3 Singapore Plastics Imports Surged in the Last Two Years as it Established Itself as Transshipment Hub in the Asia-Pacific Region 42 6.4 Turkey is Importing Major Plastics from the Middle East and Distributing in Europe 44 7 Limited Cheaper Feedstock Supply, Access to Technologies and Competitive Business Models are the Challenges to Establish a Strong Downstream Petrochemical Industry 46 7.1 Subsidized Ethane Supply has Restricted in the Recent Past Forcing Producers to Shift to Naphtha Feedstock 46 7.2 New Plants Require Modern Technologies to Compete with Downstream Producers in Europe and North America 47 7.3 The Region Needs to Create a Robust Business Model Supporting the Downstream Petrochemical Industry 48 8 Saudi Arabia and Iran are the Leading Countries Involved in Economic Diversification 49 8.1 Saudi Arabia is the Largest Manufacturer of Petrochemicals in the Middle East 49 8.1.1 Integration of Refineries and Petrochemical Plants Makes Saudi Petrochemical Industry More Efficient 51 8.1.2 Saudi Arabia Plastics Exports Relies on Asia-Pacific Demand 51 8.2 Iran is the Fastest Growing Petrochemical Industry in the Middle East 52 8.2.1 The US and European Sanctions Slowing the Iranian Petrochemical Industry Growth Rate 54 8.2.2 Iran Plans to Expand its Petrochemical Industry and Increase Polymer Exports 55 9 Major Companies at the Helm of Diversification Drive in the Middle East 56 9.1 Sadara Chemical Company A Joint Venture between Saudi Aramco and Dow Chemical Company 56 9.1.1 State of the Art Complex will Use Feedstock Supplied by Saudi Aramco 56 9.1.2 The JV will Benefit from Dows Technological Know-how and Marketing Network Outside the Middle East Region 57 9.1.3 Adjoining Plastics Conversion Park will Promote Plastics Processing Industry 58 9.2 Iran Petrochemical Commercial Company Partially Owned by National Petroleum Company 58 9.2.1 PCC Exports Petrochemicals from Eight Petrochemical Producing Regions in Iran 58 9.2.2 Polymer Export is Encouraged by the Government Due to Higher Revenue Generation 60 9.3 The Qatar Petrochemical Company Partially Owned by Qatar Petroleum 61 9.3.1 QP also Hold All the Major Planned Plastics Plants are Partially Owned by Sate Owned QP 61 9.3.2 Joint Venture between QAPCO and DOW will Start Polyolefin Production by 2018 62 10 Appendix 63 10.1 Abbreviations 63 10.2 Definitions 63 Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
10.2.1 Installed Plant Capacity 63 10.2.2 Key Feedstock 63 10.2.3 Process 63 10.2.4 Technology 63 10.3 GlobalDatas Research Methodology 63 10.3.1 Coverage 64 10.3.2 Secondary Research 64 10.3.3 Primary Research 64 10.3.4 Expert Panel Validation 65 10.4 Bibliography 65 10.5 Contact Us 65 10.6 Disclaimer 66 List of Tables Table 1: The Middle East Petroleum Industry, Share of the Oil Sector in Exports Revenue and GDP, %, 2010 10 Table 2: The Middle East Petroleum Industry, Exports Revenue from Oil Sector, $bn, 1990-2010 12 Table 3: Global Petrochemical Industry, the Middle East Basic Petrochemicals Capacity Share, %, 20002011 14 Table 4: The Middle East Petrochemical Industry, Basic Petrochemicals Capacity, MMtpa, 20002016 16 Table 5: The Middle East Petrochemical Industry, Basic Petrochemicals Complex Details, 2011 17 Table 6: The Middle East Petrochemical Industry, Basic Petrochemicals Complex Details, 2011 (Contd.) 18 Table 7: Global Oil and Gas Industry, the Middle East Share in Proved Reserve, %, 2010 20 Table 8: The Middle East Oil and Gas Industry, Crude Oil Production (MMbbl) and Natural Gas Production (bcf), 2010 21 Table 9: The Middle East Petrochemical Industry, Major Plastics Capacity by Product, MMtpa, 2000-2016 23 Table 10: The Global Petrochemical Industry, Major Plastics Capacity Split by Region, %, 20112016 24 Table 11: China Petrochemical Industry, Basic Petrochemical Capacity, MMtpa, 2000-2015 26 Table 12: Middle East Plastics Industry, Planned Capacity by Country, %, 2012-2016 27 Table 13: Middle East Plastics Industry, Planned Projects Details, 2012-2016 28 Table 14: Middle East Plastics Industry, Planned Projects Details, 2012-2016 (Contd.) 29 Table 15: The Middle East ABS, Polycarbonate and EVA Industries, Active and Planned Plants Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
Details 32 Table 16: Unemployment Rate, the Middle East and the World, %, 2005-2011 34 Table 17: The Middle East Plastics Industry, Top Five Export Markets, MMtpa, 2010 35 Table 18: China Plastics Industry, Imports from the Middle East, MMtpa, 2000-2010 37 Table 19: China Plastics Industry, the Middle East Share in Major Plastics Imports, %, 2010 37 Table 20: China Packaging Industry, Output Value, 2003-2010 39 Table 21: China Automotive Industry, Production, Million Units, 2000-2011 41 Table 22: Singapore Plastics Industry, Imports from the Middle East, MMtpa 2000-2010 43 Table 23: Singapore Plastics Industry, Middle East Share in Major Plastics Import, %, 2010 44 Table 24: Turkey Plastics Industry, Imports from the Middle East, MMtpa 2000-2010 45 Table 25: Turkey Plastics Industry, Middle East Share in Major Plastics Imports, %, 2010 45 Table 26: The Middle East Petrochemical Industry, Planned Projects Based on Naphtha, 20122016 47 Table 27: Saudi Arabia Plastics Industry, Demand and Production, MMtpa, 2000-2016 50 Table 28: Saudi Arabia Petrochemical Industry, Major Plastics Exports by Region, %, 2010 52 Table 29: Iran Plastics Industry, Demand and Production, MMtpa, 2000-2016 53 Table 30: Iran Petrochemical Industry, Major Plastics Exports by Region, %, 2010 54 Table 31: Iran Petrochemicals Industry, Plastic Exports by Region, %, 2010 55 Table 32: Sadara Chemical Company, Al- Jubail Complex Details, 2012-2016 57 Table 33: Iran Plastics Industry, Planned Plant Details, 2012-2016 59 Table 34: Iran Petrochemical Commercial Co., Exports share of Major Segments by Value and Quantity, %, 2010 60 Table 35: Qatar Petroleum, Planned Plants Details, 2012-2016 61 Table 36: Qatar Petroleum-QAPCO JV, Planned Project Details 62 List of Figures Figure 1: The Middle East Petroleum Industry, Share of the Oil Sector in Exports Revenue and GDP, %, 2010 10 Figure 2: The Middle East Petroleum Industry, Exports Revenue from Oil Sector, $bn, 1990-2010 11 Figure 3: Global Petrochemical Industry, the Middle East Basic Petrochemicals Capacity Share, %, 20002011 14 Figure 4: The Middle East Petrochemical Industry, Basic Petrochemicals Capacity, MMtpa, 20002016 15 Figure 5: Global Oil and Gas Industry, the Middle East Share in Proved Reserve, %, 2010 20 Figure 6: The Middle East Oil and Gas Industry, Crude Oil Production (MMbbl) and Natural Gas Production (bcf), 2010 21 Figure 7: The Middle East Petrochemical Industry, Major Plastics Capacity by Product, MMtpa, Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
2000-2016 22 Figure 8: The Global Petrochemical Industry, Major Plastics Capacity Split by Region, %, 20112016 24 Figure 9: China Petrochemical Industry, Basic Petrochemicals Capacity, MMtpa, 2000-2015 25 Figure 10: Middle East Plastics Industry, Planned Capacity by Country, %, 2012-2016 27 Figure 11: Unemployment Rate, the Middle East and the World, %, 2005-2011 33 Figure 12: The Middle East Plastics Industry, Top Five Export Markets, MMtpa, 2010 35 Figure 13: China Plastics Industry, Imports from the Middle East, MMtpa, 2000-2010 36 Figure 14: China Plastics Industry, the Middle East Share in Major Plastics Imports, %, 2010 37 Figure 15: China Packaging Industry, Output Value, 2003-2010 38 Figure 16: China Automotive Industry, Production, Million Units, 2000-2011 40 Figure 17: Singapore Plastics Industry, Imports from the Middle East, MMtpa 2000-2010 42 Figure 18: Singapore Plastics Industry, the Middle East Share in Major Plastics Import, %, 2010 43 Figure 19: Turkey Plastics Industry, Imports from the Middle East, MMtpa 2000-2010 44 Figure 20: Turkey Plastics Industry, Middle East Share in Major Plastics Imports, %, 2010 45 Figure 21: Saudi Arabia Plastics Industry, Demand and Production, MMtpa, 2000-2016 50 Figure 22: Saudi Arabia Petrochemical Industry, Major Plastics Exports by Region, %, 2010 51 Figure 23: Iran Plastics Industry, Demand and Production, MMtpa, 2000-2016 52 Figure 24: Iran Petrochemical Industry, Major Plastics Exports by Region, %, 2010 54 Figure 25: Iran Petrochemicals Industry, Plastic Exports by Region, %, 2010 55 Figure 26: Iran Petrochemical Commercial Co., Exports Share of Major Segments by Value and Quantity, %, 2010 60 Related reports: Global Water Soluble Polymers Market 2014-2018 India Leather Chemicals Market Forecast and Opportunities, 2019 Chemicals Market Research
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