Known for its valuable resources in oil and gas, the Middle East is a popular investment destination. The region is rich in crude oil and has grown to be a significant petrochemical producer. Petrochemicals are chemical substances made from petroleum and natural gases. Considering the region’s strategic importance in this sector, let’s address petrochemical projects in the Middle East.
What is the largest Petrochemical Company in the Middle East?
The largest petrochemical company in the Middle East is Saudi Arabian industrial company SABIC. The petrochemical manufacturer was established in 1976 and has reported $335 million in profits and $31.2 billion in sales in 2021. Their market value stood at $99.2 billion in that same year.
SABIC conducts business operations in over 50 countries with a total number of employees accounting for more than 33,000 globally. Through its many facility acquisitions, the company is able to operate in European countries such as the Netherlands, Germany, and the U.K.
What is the capacity of Petrochemicals in the Middle East?
The Middle East is vastly rich in oil and gas, giving it great potential for producing chemical products such as petrochemicals. New mega projects have been rising regionally in the past two years, with Kuwait, Saudi Arabia, and the UAE leading a large upcoming petrochemical project. In addition, the Gulf region could attract $9.4 billion in mega-petrochemical projects in 2020 increase of 14.3% from the previous year.
Oil, and Gas Petrochemical Projects in the Middle East
Some of the most notable petrochemical projects in the region include:
- Leading Egyptian petrochemical firm, Anchorage Investments, is building a new petrochemical complex in Suez, Egypt. The project, named Anchor Benitoite, aims to achieve local and regional success by producing 1.75 million tonnes per annum of petrochemical products.
- The Saudi Aramco Total Refining and Petrochemical Company is undertaking a large petrochemical project, the Al-Jubail Ethylene Plant costing $1.6 billion.
- On the coast of Qatar, the Ras Laffan refinery aims to produce 10 million tonnes per annum of LNG (Liquified Natural Gas). The refinery plans to expand the plant by 30% to increase LNG production as well as produce ethane to be used as feedstock for petrochemical development in Qatar.
Most Profitable Petrochemical Products
Looking at the petrochemical market, Ethylene dominated the global market in 2021. As ethylene is frequently used compared to other petrochemical derivatives, it is estimated to maintain its position. The use of ethylene can be found in packaging, automotive, construction, and more.
Falling below Ethylene, Propylene is the second biggest produced product in the global market. Propylene is widely used in the food industry and can be found in food preservatives and colorings.
Lastly, Butadiene is the third most manufactured petrochemical product. This petrochemical derivative is used in synthetic rubber products such as tires, hoses, belts, etc.
Global Petrochemical Projects
Apart from the middle eastern petrochemical projects listed, some of the global projects comprise:
- The Adana Refinery and Petrochemical Complex in Turkey is a project costing $10 billion and is expected to create 10K new jobs during its construction.
- In Azerbaijan, the Garadagh Oil, Gas Processing and Petrochemical Complex, will be equipped to produce 1 million tonnes per annum of chemical products.
- The INEOS Project ONE, set to be built in Belgium is what the company is calling the most energy-efficient ethylene cracker in Europe. The project includes 2 major installations to produce ethylene and propylene.
To conclude, the Middle East has a track record of successful petrochemical companies thanks to its richness in resources. Among the leading companies in the sector is an Egyptian company, Anchorage Investments which is building a new petrochemical complex in Suez, Egypt. Petrochemicals are distinctly important as they’re used in our everyday commodities.