Middle East Polypropylene Production Capacities to Increase to 9.5 Million Tons per Year

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Gulf Petrochemicals and Chemicals Association (GPCA) (Dubai, United Arab Emirates) expects the production capacities of plastic production resin facilities in the region to more than double in the next five years.

Speaking before the opening of the first GPCA Plastics Summit, which was held in Dubai June 15-16, Dr. Abdulwahab Al-Sadoun, the secretary-general of GPCA, forecast that the polypropylene-production capacity in the Persian Gulf region will increase from the 2009 figure of 4.8 million tons per year to 9.5 million tons per year by 2015, representing a 98% increase.

Dr. Al-Sadoun also forecast that polyethylene-production capacities would rise from the 10.7 million tons achieved in 2009 to 21.5 million tons by 2015, or an increase of more than 100%. Combining the results of these two major polyolefins will lead to a total production capacity of more than 31 million tons per year by 2015.

The Middle East is developing into a major player in the plastic production resin sector and expects to raise its share of the global polyethylene market from the 13% the region enjoyed in 2008 to 19% in 2015, which would make the region the leading production region globally.

The rise in polypropylene production in the Middle East will enable the region to increase its global share to 13% in 2015, up from 9% in 2008. However, the increased production will leave the Middle East lagging behind the Asia Pacific region, which is forecast to hold a 23% share; China, which will have a 17% share; and Western Europe, which will have a 14% share. The Middle East is set to overtake North America in both polyethylene and polypropylene production by 2015.

The Middle East currently accounts for about 10% of the global supply of petrochemicals, largely because of the region's close location to the high-demand areas of Asia and the availability of cheap feedstock. However, the latter may become a major challenge to the region, which is facing a shortage of ethane and gas for the petrochemical industries.

There has been a lack of growth in the exploration activities and production capacities for ethane, and more and more gas is being earmarked for electricity generation. These two factors have led to the gradual shift by Persian Gulf-based producers toward heavier feedstock.

The move to heavier feedstock for the petrochemical sector has both advantages and disadvantages. The previous favorite, ethane, is more cost effective than a heavier feedstock; however, it restricts production to basic olefins. The heavier feedstock, while less financially viable, has the advantage of allowing a far wider range of petrochemicals to be produced.

The expansion of the Gulf production facilities, coupled with the use of heavier feedstock will, according to Dr. Al-Sadoun, "bring a more diversified product portfolio to the industry, with a number of new goods being produced for the first time in the Gulf region over the next five years, including engineering plastics, acrylics and synthetic rubber. These new products will stimulate a new breadth of downstream industries in the Gulf region, resulting in more value added, as well as creating numerous job opportunities."

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