Riyadh-Mubasher: The gulf petrochemical industry can grow its share of the global market, but must increase its competitiveness in order to do so, Yousef A. Al-Benyan, SABIC's acting vice chairman and chief executive told an industry conference
“For the industry, the global outlook is strong,” Al-Benyan said. “SABIC projects Ethylene demand growing three percent annually between now and 2035.
“We in the Middle East can grow our share of that market, but we will need to increase our competitiveness.”
Al-Benyan delivered his remarks at the 10th Annual Forum of the Gulf Petrochemicals & Chemicals Association (GPCA). He also serves as vice chairman of the GPCA.
He told the assembled industry leaders that while the volatility of oil markets and the overall global economy were important influences on the industry, the challenges it faces are structural in nature: a fast-changing competitive landscape, increasing petrochemical self-sufficiency in several major markets, and a changing landscape in global trade relations.
The energy renaissance in the United States is one of the most significant developments the industry has faced in recent years. This burst of production is conferring considerable price-side advantages on US-based crackers.
"Right now, Middle East crackers are the most competitive in the world,” he said. “US crackers in the shale era are no longer high-cost producers. Instead, they are now the most competitive in the world outside of the Middle East.”
