TEHRAN (APETDC) --The Middle East, a major region for the petrochemical industry, witnessed several new developments in October, ranging from a global conference on decarbonisation to new projects that will boost production and exports.
The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), one of the world's largest oil and gas events, kicked off on Sunday with the theme of "Decarbonising, Faster, Together". The four-day conference will feature discussions on the role of oil and gas in the energy transition, the challenges and opportunities of carbon capture and storage, and the potential of hydrogen and other low-carbon fuels. ADIPEC is expected to attract thousands of delegates from around the world, including ministers, business leaders, and experts.
Saudi Arabia, the world's largest oil exporter, is continuing to expand its petrochemical capacity, with several projects expected to start operations between 2023 and 2027. According to GlobalData, a data and analytics company, petrochemical projects will account for around 61% of the total oil and gas projects in the country during this period. One of the major projects is the Al-Jubail Ethylene Plant, which will have a capacity of 1.5 million tonnes per annum (mtpa) and cost $2.7 billion. The plant will provide feedstock to other petrochemical and specialty companies in the Jubail industrial city.
Iran, which faces US sanctions and economic challenges, is also adding significant petrochemical capacity, aiming to increase its output from 66 mtpa in 2020 to 100 mtpa by 2025, with investments worth $37 billion. Iran plans to diversify its petrochemical products and markets, and reduce its dependence on crude oil exports.
Egypt and Nigeria are set to transform themselves into net exporters of basic polymers and fertiliser, thanks to new petrochemical projects coming online. Egypt is developing several projects in the Suez Canal Economic Zone, such as the Tahrir Petrochemical Complex, which will be the largest integrated petrochemical complex in Africa and the Middle East. Nigeria is building the Dangote Refinery and Petrochemical Complex, which will have a refining capacity of 650,000 barrels per day and a fertiliser capacity of 3 mtpa.
The Middle East and Africa region is expected to see a surge in petrochemical demand in the coming years, driven by population growth, urbanisation, industrialisation, and infrastructure development. The region is also expected to play a key role in the global efforts to reduce greenhouse gas emissions and achieve net-zero targets.