Saudis petrochemicals industryon expansion
Published By : 03 Jul 2014 | Published By : QYRESEARCH
Saudi Petrochemicals industry has diversified its feedstock mix and expanding its products lot to involve more and more value intermediates, reported BMI.
BMI said this act is essential because as Saudi Arabia bans the imports of pricing structure and natural gas for domestic supplies it has also reduced the incentive slot to explore for more.
Many foreign organizations are alleging joint ventures with the Saudi Aramco, an oil firm in order to look out for gas deposits. However, the last ten years have been futile for these companies. Saudi Arabia’s main focus is all for the unconventional deposits that would need more expensive and complex technologies.
The increase in the gas extraction costs will increase the cost of production and dentthe industry’s competitiveness against the threat of US shale production.
According to the BMI, Saudi Arabia will continue to be a robust market in the field of petrochemicals goods, whereas, in terms of domestic market, the country will remain dynamic and large by Arabian Gulf standards.
When it comes to petrochemicals in the UAE, naphtha will be boosted by the expansion in the refinery sector at Ruwais, further contributing to the Emirati industry’s market edge and production of a wide range of products. Additionally, the global packaging market is a major polymer consumer in the market contributing to the growth of this market.
The effect of China’s economic stimulus hasn’t still been experienced by the UAE, but it will be no sooner when the cooling credit expansion will reveal the hangover ripples in the upcoming quarters.