Petrochemical companies perform the process of petrochemistry. They produce petrochemical derivatives used as raw materials to produce products, including but not limited to plastics, fibers, and synthetics.
Petrochemicals are chemical substances created based on converting petroleum and natural gases. Petroleum, also referred to as crude oil, goes through a process of refining which results in the creation of raw materials to be converted into petrochemicals.
The industry of petrochemicals is constantly growing, with new projects taking place worldwide. The substances in question provide a cost-effective and environmentally friendly solution to an increased demand for overall products and services. In this article, we will touch upon the industry, specifically petrochemical companies in Egypt.
Demand for petrochemicals
The petrochemical industry is a growing market. In 2021, the industry was valued globally at USD 556.09 billion and was estimated to expand at an annual growth rate of 6.2% from 2022 to 2023. This increase in demand is due to a rise in the demand for downstream products from several industries, including construction, pharmaceuticals, and automotive.
Crude oil prices notably affect the prices of petrochemical products for product manufacturing. Notably, the Russia-Ukraine war in 2022 largely affected the industry, and petrochemical companies worldwide had to face challenges from the war and COVID-19.
More specifically, the invasion of Ukraine and the chain of actions taken by Western countries led to a significant increase in oil and gas prices. This disruption led to an increase in most commodities due to the increase in the cost of production.
This industry is widely dynamic by its fluctuations, players, and events that gather authority figures and industry experts. The world petrochemical conference is one of those events.
World petrochemical conference 2022
The World Petrochemical Conference is a global platform that brings together market leaders, and government officials to initiate dialogue and share insights on major and strategic issues being currently faced in the petrochemical industry.
In 2022, the conference was attended by 1500 registrants representing more than 40 countries, 215 speakers, 131 presenters, and 37 partners. Some of the conference’s strategic partners include McKinsey & Company, KPMG, and the American Chemistry Council. Other industry partners comprise ABB, Exxon Mobil, and Lummus Technology.
Qatar Chemical and Petrochemical company
Qatar Chemical and Petrochemical Company is one of the major oil producers globally, making them a significant player in the industry. The Qatar Chemical and Petrochemical company is owned by Mesaieed Petrochemical Holding Company which is majority owned by QatarEnergy. Qatar Chemical and Petrochemical began its activities in 2004 with an initial $1 billion investment. The company aims to grow sustainably, aligned with the country’s national plan and vision.
The region itself contains leaders in the petrochemicals industry, whether in crude oil exporters or petrochemical production. Returning to the article’s central topic, let us dig into the petrochemical companies in Egypt.
Petrochemicals Companies in Egypt
The petrochemical industry is not only growing globally and significantly growing in Egypt. In 2021, the Egyptian government heavily invested in petrochemical projects with about $14 billion of investments.
Some petrochemical companies in the Egyptian market include the Egyptian Petrochemical Company, Sidi Kerir Petrochemical Company, Egyptian Petrochemicals Holding Company, and Anchorage Investments.
Anchorage Investments is a dynamic player in the petrochemical field. Their most recent project involved the construction of a petrochemical complex in the Suez Canal, Egypt. This state-of-the-art project comprises several production units estimated to produce 1.75 million tons per annum of petrochemical products and intermediates such as propylene, polypropylene, crude acrylic acid, N-Butanol, and Butyl Acrylate.
The project aims to make the petrochemical plant a local and regional producer. The area where the project will take place provides distinctive geographical advantages, especially for port connectivity and capital and operating costs. In 2022, the company already began looking into potential engineering contractors to begin construction.
To conclude, petrochemicals and their derivatives are a vital component of daily goods and services production. Looking at petrochemical companies in Egypt, we see that players such as Anchorage Investments are key players in the industry. Their recent project proves their dynamicity with ambition for the project to reach regional success.
Additionally, the petrochemical industry has greatly grown and was heavily impacted by the recent events of the Russia-Ukraine invasion and COVID-19, which led to an increase in prices due to an increased cost of production in parallel to increased demand. Events such as the world petrochemical conference allow the discussion of such issues among industry leaders.