dr.abdulwahab al-sadoun - the annual gpca forum...2015 2016 90% 86% 2017 78% gcc capacity...

Dr.Abdulwahab Al-SadounThe GCC Chemical Industry: Year in Review

Agenda

⚫ The Current State of the GCC Chemical Industry

⚫ Future Strategic Direction

⚫ Capacity Expansion & Back Integration

⚫ Products Diversification

⚫ Closing Remarks

Production capacity in 2017 reached 166.8 million tons, up by 7% YoY, while revenue grew by

17%, indicative of the industry’s move towards higher value products

GCC Production Capacity vs. Sales Revenue Growth, 2007-2017

(million tons)

50

0

0%

150

100

200

-20%

20%

40%

60%

80%

100%

2008 20152007 2009

166.8

2010 2011 2012 2013 2014 2016

+17%

2017

155.8

+7%Production Capacity

Sales Revenue Growth

Source: GPCA Analysis, 2018

Note: GPCA full member companies only

The Industry’s Growth Pattern (2007-2017)

Revenue Segmentation - 2017

The majority of revenue is due to polymers which accounted for 42% of sales (USD 35.3

billion), followed by value added chemicals accounting for 34% (USD 28.9 billion)

GCC Chemical Sales by Sector

(2017, total USD 84.2 billion)

GCC Chemical Sales by Country

(2017, total USD 84.2 billion)

Source: GPCA Analysis

Note: GPCA full member companies only

Polymers

5%Fertilizers

42%11%

34%Value added

chemicals

7%

Other

Basic

Chemicals

Intermediates

1%

KSA

78%

1%

3%6%5%

Qatar

Oman

8%

UAE

KuwaitBahrain

Capacity Utilization: Regional vs. Global

Despite a small downward trend in capacity utilization, the GCC industry continued in 2017 its

strong performance with 90% capacity utilization compared to 86% globally

GCC Chemicals Capacity Utilization vs. Global (%) (2007-2017)

60

40

20

100

0

80

89% 84%83%

95% 92%95%

2010

99%

2007

96%

85%

2008

93%93%

84%

2009

83%

2011

93%

81%

20142012

83%

2013

94% 92%

85%

2015 2016

90%

86%

2017

78%

GCC Capacity Utilization

Global Capacity Utilization

Source: GPCA Analysis 2018, ACC Data

Agenda





⚫ Closing Remarks

Capacity Expansion & Back Integration

The GCC Industry is going through a drive toward heavier feedstock cracking and back

integration with the oil refining industry


Planned Integrated Refinery-Petrochemical Projects in the GCC 2017-2025

Project Owner GCC Country Capacity Product SlateBudget

($m)Status

Timeline/

Commissioning

Crude Oil-to-Chemicals

(COTC)

Saudi

Aramco/SabicSaudi Arabia 9 million tons

Aromatics, Ethylene,

Propylene, Glycol, Alpha-

olefins

20,000 Study 2025

Duqm Petrochemicals

Complex

Duqm Refinery;

KPI, Oman Oil

Company

Oman 3 million tons

Ethylene derivatives, Oxo

chemicals, PP, Butadiene,

MTBE and Aromatics

9,000 Study 2025

Al-Zour Petrochemicals

ComplexKIPIC Kuwait 2.7 million tons

Aromatics, Propylene,

MTBE7,800 EPC PQ 2023

Amiral; Mixed-feed cracker

and derivatives complex

Satorp;

Aramco/Total Saudi Arabia 4.7 million tons

Ethylene, Propylene, High

value chemicals5,000 Study 2024

Borouge 4 Mixed feed cracker

& derivatives Complex

Borouge;

ADNOC,

Borealis

UAE 5 million tonsEthylene, PE, Propylene,

PP, Butene-14,000 Study 2024

Jizan Refinery Saudi Aramco Saudi Arabia 5 million tons Aromatics 3,800 Study 2023

Aromatics Complex Bapco Bahrain 1.2 million tonsCondensate, oil products,

aromatics1,500 Feed 2022

Capacity Expansion & Back Integration

The GCC Industry is poised to add throughout the 6 GCC States over the next decade 37.8

million tons


Note: GCC Capacity 2027 conservative estimate

GCC Capacity Expansion by Feedstock Source 2017-2027 (million tons)

9.0

COTCGCC Capacity

2017

16.68.0

NGLs Refinery

Integration

GCC Capacity

2027

166.8

204.6

Capacity Expansion - Overseas Production

Likewise, the GCC overseas production capacity is projected to expand reaching 38.7 Million

Tons by 2027, adding close to 20 Million, over half of it located in Asia

GCC Overseas Capacity, 2007-2027

(million tons)

GCC Overseas Production Capacity by Region

(million tons)


2017 2027

18.7

38.7

2017

24%

49%

27%

59%

12%

29%

2027

18.7 MT 38.7 MT

Asia North America Europe

CAGR

7.6%

The industry continued its products diversification drive, with highest growth exhibited by the

performance polymers industry segment followed by the value added chemicals segment

GCC Product Segment Growth (%) (1997-2017)


Note: Growth is calculated based on production capacity

Value added

chemicals

Basic

chemicals

40.3%

14.1%

8.2%11.5%

14.3%

Performance

polymers

9.0%

17.0%15.2%

8.6%

Commodit

y polymers

19.0%

7.5%

Inorganic

chemical

s

4.9%

7.5%

Fertilizers

6.3%

Intermediates

CAGR 97-2007 CAGR 07-2017

Products Diversification Drive

Products Diversification Drive

The chemical industry continues to create value by introducing new products; over the next ten-

year horizon 20 new products will enter production, 72% of which are value added chemicals

Product and Capacity Additions in the GCC Chemical Industry (million tons)

37.8

Capacity additionsGCC Capacity 2017 GCC Capacity 2027

204.6

166.8

Source: Preliminary GPCA Analysis

72%

Value added

Chemicals

4%

8%5%

11%

Inorganic

Chemicals

Performance

Polymers

Intermediates Fertilizers

20+ new

products

Agenda





⚫ Closing Remarks

Forum

Highlights

Forum in Numbers

49 2,109 40 623 16 9

Growth Trend

Leaders of Tomorrow

Leaders of Tomorrow: Video

Leaders of Tomorrow

Students visit to Borouge Innovation Center

Masterclasses

Masterclass session 1

Masterclass 1-

A: Digitalization

in the chemical

industry

Masterclass 1-

B: Women in

the chemical

industry

Masterclass session 2

Masterclass 2-

A: Cyber

security in the

chemical

industry

Masterclass 2-B:

The global

chemical

industry in an era

of protectionism

SeminarsGlobal energy transition:

Friend or foe to the

chemicals sector in the

Middle East?

Patterns of value creation

in the global chemical

and petrochemical

industries

Feedstock push hits the

demand wall

New materials and new

processes for the 2020s

Circular Economy

GPCA Sustainability Initiative & Sustainability Zone

The following GPCA members have actively contributed to the

success of the sustainability zone

Thank you to ExxonMobil for sponsoring the GPCA

Sustainability Initiative and Zone

Publications

• The GCC Petrochemical

and Chemical Industry:

Facts and Figures 2017

• Insight Newsletter – Annual

Forum edition

Publications

New book documenting the history of the GCC petrochemical industry for the first time in Arabic

Speakers

Speakers

H.E. Shaikh Mohammed bin

Khalifa bin Ahmed Al

Khalifa, Minister of Oil

Bahrain

Yousef Al-Benyan

Vice Chairman and CEO |

Chairman

SABIC | GPCA

Amin Nasser

President and CEO

Saudi Aramco

Raghavendra Rao

Secretary, Chemicals and

Petrochemicals, Department of

Chemicals and Petro-

Chemicals, India

Jim Fitterling

CEO

Dow Chemical Company

Mark Lashier

President and CEO

Chevron Phillips

Chemical Company

Daniele Ferrari

CEO

Versalis

Murat Sönmez

Managing Director, Head of

Centre for the Fourth

Industrial Revolution

World Economic Forum

Fernando Gómez

Head of Chemistry and

Advanced Materials

Industry

World Economic Forum

Dr. Aabed Al-Saadoun

Deputy Minister for

Company Affairs, Ministry

of Energy, Industry and

Mineral Resources,

Saudi Arabia

Musabbeh Al Kaabi

CEO, Petroleum and

Petrochemicals

Mubadala

Mutlaq Al-Morished

CEO

TASNEE

Seminar: Circular Economy

Speakers:

Dave Andrew,

VP, Sustainability,

ExxonMobil

Lorraine Francourt,

Director, Chemicals

Management Policy

and Circular

Economy, Dow

Chemical Company

Craig Halgreen,

Director, Sustainability

and Public Affairs,

Borealis

James Seward,

VP, Sustainability,

Technology and

JVs, LyondellBasell

and Chairman, World

Plastics Council

Moderated by:

John Pearson,

Founder and CEO,

Chemical Industry

Roundtables

Moderator

Masterclass Speakers

Anders Brun,

Partner,

McKinsey & Co

Frithjof Netzer,

Chief Digital Officer,

BASF

Thorsten Wenzel,

VP and Global Head of

Chemicals, SAP

John Pearson,

Founder and

CEO,

Chemical

Industry

Roundtables

Fatema Al Nuaimi,

CEO, ADNOC LNG

Abeer Al-Omar, Senior

Executive, Corporate

Communications and

Government Affairs,

EQUATE

Nathalie Brunelle,

SVP, Corporate

Affairs Refining and

Chemicals, Total

Gina Fyffe, CEO,

Integra

Lyn Tattum,

Group VP, IHS

Markit

Murhaf Al-Madani,

VP, Global Information

Technology and CIO,

SABIC

Dan Caban,

Managing

Consultant for

Incident Response

and Digital

Forensics,

Mandiant, FireEye

Khalid Al-Harbi,

Chief Information

Security

Officer, Saudi

Aramco

Ahmad Al-Saleh,

Global Business

Director, Ethylene

Glycol, EQUATE

and Vice Chairman,

International Trade

Committee, GPCA

Paul Harnick,

Global Head of

Chemicals and

Performance

Technologies,

KPMG

René van Sloten,

Executive Director,

Industrial Policy,

European Chemical

Industry Council

Michael Walls,

VP, Regulatory and

Technical

Affairs, American

Chemistry Council

John Richardson,

Senior Consultant,

Asia, ICIS

Moderators

Seminar: Knowledge Partner

Speakers:

Alan Gelder,

VP, Refining,

Chemicals and Oil

Markets,

Wood Mackenzie

Gordon Haire,

Head of

Aromatics,

Wood Mackenzie

Speakers:

Udo Jung,

Senior Partner,

Chemical Practice,

Boston

Consulting Group

Mirko Rubeis,

Partner and

MD, Boston

Consulting

Group

Speakers:

John

Richardson,

Senior Consultant,

Asia, ICIS

David Hughes,

CEO, Internationa

l eChem

Speakers:

Matthew Hartley,

Senior Consultant,

Individual Project

Studies, Tecnon

OrbiChem

Gillian Tweddle,

Business Manager,

Individual Project

Studies, Tecnon

OrbiChem

dr.abdulwahab al-sadoun - the annual gpca forum...2015 2016 90% 86% 2017 78% gcc capacity...

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