MIDDLE EAST INDUSTRIAL BRIEFS

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Researched by Industrial Info Resources

Oil & Gas

Power Plays for Iran-India Gas Pipeline

India’s negotiations with Iran for a supply of 5 million tons of LNG per annum over a 20 year period starting in 2009, could be a deciding factor in the power plays surrounding the proposed $7 billion gas pipeline with a route from Iran through Pakistan to India. The US, in line with its policy to isolate Iran, has been against the pipeline, but Russia is keen to become a significant investor in the project. The three countries on the route are due to sign an agreement on the project next month.

Russia’s Gazprom is pushing the project through its Iranian connections and see the pipeline as part of a larger regional gas supply network which could be extended to link in with supplies to China. India has been chary about the route through Pakistan but with its need for gas as an energy source to back its economic growth it may be convinced of the Iran-Russia connection. Russia has the world’s largest gas reserves and Iran the second largest.

Gulf OPEC Members Investing $270 Billion to Keep Pumping Secure Oil Supply

OPEC members of the GCC (Gulf Cooperation Council) are set to spend $270 million through 2010. “Investments of this magnitude in my country (UAE) and in neighboring states will certainly provide comfort to those who are worried about the security of supply,” said UAE Energy Minister and President of OPEC, Al Hameli said. He added that the Gulf countries had embarked on significant expansion plans to increase oil production capacity to maintain market stability and to ensure that all customers, particularly those in Asia, remain well supplied. Speaking at the Second Asian Ministerial Energy Roundtable in Riyadh, Saudi Arabia, he said that proven oil reserves in the Gulf stand at 65% of proven world reserves and the region holds 35% of proven world gas reserves.

Petrochemicals

Saudi Kayan Launches $1.8 Billion Project

Saudi Kayak Petrochemical Company launched its $1.8 billion independent public offering (IPO) in Saudi Arabia. The project, Saudi Kayan, to be located in Jubail Industrial City, will have an annual production capacity exceeding 5.6 million tons of petrochemical and chemical products. The product profile includes polymers (HDPE, LDPE and PP), basic chemicals (ethylene and propylene, intermediates (EG) and specialties (polycarbonates, ethanolamines, ethoxylates, dimethyl formamide, choline chloride, bisphenol A and acetome).

Dow Joins complex Expansion Plan in Libya

The National Oil Corporation of Libya and Dow Chemical are to establish a joint venture to expand the Ras Lanuf Petrochemical Complex in Libya. The project will include the expansion of an existing naphtha cracker and PE production facilities followed by construction of an ethane cracker and additional polyethylene and propylene facilities.

Oman Refinery Looks at $7 Billion Cost Estimate

Jacobs Engineering UK has submitted an initial feasibility study for a proposed oil refinery and petrochemical complex on the southeast coast of Oman. The refinery would have a capacity of between 200-300,000 barrels per day. The estimated cost in the report is around $7 billion but the country’s oil ministry considers that it could cost above that figure. While backing major project development, a number of Middle Eastern capital project promoters and backers are taking a second look at projects, searching for economies and testing viabilities.

General Industry

Sabic Hits Record Profit in First Quarter

Saudi Basic Industries Corporation (SABIC) reported a 50% profit increase for the first quarter of 2007 over the same period in 2006. The move was from $1.12 billion in 2006 to $1.68 billion in 2007 for the quarter. Consolidated operating profits rose from $ 1.76 billion in 2006 by 45% to $2.56 billion for the period. This represents the highest ever profit since the company’s inception, exceeding the record figure reported for the last quarter of 2006. The rise in profits is due to the improvement in prices of most of the key products, and as a result of increased production and marketing of products by 14% and 11% respectively.

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