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Adnoc to triple petrochemical production by 2025

Demand for petrochemicals to come from growing economies in Asia, Adnoc CEO says

Gulf News

Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) plans to almost triple its petrochemical production capacity from 4.5 million tonnes to 11.4 million tonnes per year by 2025, the UAE Minister of State and Adnoc Group CEO said on Monday.

“To achieve this we will seamlessly integrate our refining and petrochemical businesses and exploit the full portfolio of derivatives from naphtha. In doing so, we will maximise value and maintain strong margins,” Sultan Al Jaber said while speaking at the Gulf Petrochemicals and Chemicals Association conference in Dubai.

He said the greatest opportunity for the GCC (Gulf Cooperation Council) petrochemical producers lies in the economic shift from the low growth markets in the West to the high growth markets in the East.

By 2030, he pointed out, Asia will become the main driver of global economic growth, with demand for petrochemicals doubling.

“But whilst the GCC petrochemicals industry has been growing at over 10 per cent every year since 2000, its growth must accelerate if it is to keep pace with demand.”

According to Platts Petrochemical Analytics, the global demand for polyethylene will exceed supply post 2022, opening up further growth opportunities.

The top three markets for Middle East Polyethylene in 2015 were China, with 3.6 million tonnes per annum, followed by Singapore with 1.1 million tonnes per annum and India with 0.75 million tonnes per annum.

By 2025, Asia is projected to account for 62 per cent of global polyethylene demand, with China and India the biggest markets.

Al Jaber called on GCC petrochemical producers to think creatively about how best to seize the opportunities presented by growing demand for petrochemical products, particularly in Asia. “Let us look beyond our borders and collaborate more closely,” he said.

“Let us overcome barriers, by enhancing trade policies, and collectively capitalise on market access. By doing so, the GCC can become a truly global powerhouse.”

He also told conference delegates that partnerships are more critical than ever, if GCC petrochemical companies are to thrive in today’s intensely competitive global economy.

“These partnerships should benefit our shareholders and our stakeholders alike, building not just profit, but social progress as well. With the right partners, we can generate greater value and maximise the benefits,” he said. “We at Adnoc are ready, willing and able to forge new partnerships that will help propel the region’s industry forward.”

The latest comments from Al Jaber come as Adnoc focuses to deliver a more profitable upstream, more valuable downstream and a more sustainable and economical gas supply as part of its new 2030 strategy and five year business plan which was recently approved by Abu Dhabi’s Supreme Petroleum Council.