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GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

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GPCA Facts and Figures 2011

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  • GCC Petrochemicals & Chemicals Industry

    Facts & Figures 2011

  • GPCA at a glanceThe Gulf Petrochemicals and Chemicals Association (GPCA) is the first trade association of its kind in the Gulf region. And in six short years it has become the benchmark for the regions industry as well as its voice to the rest of the world. It has established powerful credentials and gained a tangible credibility and trustworthiness. Its burgeoning membership is eloquent testimony to the positive role it plays in promoting the current priorities and issues prevailing in the petrochemical sector. The eight visionary founding members who launched the concept in 2006 are SABIC and TASNEE from Saudi Arabia, QAPCO and QVC from Qatar, PIC and Equate from Kuwait, Borouge from Abu Dhabi, and GPIC from Bahrain. Since then GPCAs membership base has been growing at the phenomenal rate of 23% per annum. By the end of 2011, GPCAs full member companies, the regional producers of petrochemical and chemicals, collectively represented as high as 95% of the total Gulfs petrochemical output by volume, thus, placing GPCA in the unrivalled position of being the industrial spokesperson on matters of importance.

  • 3.4 GCC Capacity Additions (2010-2011) 3.4.1 Capacity additions: breakdown by country 61 3.4.2 Capacity additions: breakdown by product group 62 3.4.3 Basic petrochemicals capacity growth (2007-2011) 63

    4. GCC International Trade (2007-2011) 68 4.1 GCC production and export 70 4.2 GCC export by origin 73 4.3 GCC export by product groups 74 4.4 GCC export by destination 75 4.5 Detailed analysis of GCC exports by destination 76 4.6 GCC international trade surplus: 81

    breakdown by destination 4.7 GCC international trade surplus: 82

    breakdown by product 4.8 Share of chemicals in the worldwide exports of 83

    manufactured goods 4.9 Share of GCC in worldwide chemicals exports 84 4.10. Ranking of GCC countries in worldwide 86

    chemicals exports

    5. Employment (2010-2011) 87 5.1 Employment in GCC petrochemicals industry:

    breakdown by country 5.2 Employment in GCC manufacturing and 89

    petrochemicals industry 5.3 Workforce nationalization in GCC petrochemical 90

    industry

    6. Sales Revenue (2010-2011) 92 6.1 GCC Petrochemicals Industry Sales Revenue 94

    by Country 6.2 Share of GCC in Worldwide Chemicals 95

    Sales Revenues

    7. Acknowledgements 96

    Contents1. A Message from the Secretary General 4

    2. GCC Macroeconomic Indicators 5 2. 1 Contribution of the petrochemical sector to 6

    regional and national GDP 2.2. Share of Petrochemicals in non-oil exports 13

    on regional and national levels

    3. GCC Petrochemicals Industry Profile 20

    3.1 GCC Production Capacity by Product (2007-2011) 3.1.1 GCC Capacity: Breakdown by Product Groups 22 3.1.2 GCC Capacity: Breakdown by Value-chain 24 3.1.3 Basic Petrochemicals 26 3.1.4 Fertilizers 28 3.1.5 Polymers 30 3.1.6 Intermediates 31 3.1.7 Top 10 Products in GCC Petrochemicals 32

    Capacity 3.1.8 Share of GCC top 10 Products in the 33

    Worldwide Capacity 3.1.9. Global Ranking of GCC top 10 Products 43

    3.2 GCC Production Capacity by Country (2007-2011) 3.2.1. GCC Production Capacity 44 3.2.2. Basic Petrochemicals: Breakdown by Country 46 3.2.3 Fertilizers: Breakdown by Country 48 3.2.4 Intermediates: Breakdown by Country 50 3.2.5 Polymers: Breakdown by Country 51

    3.3 GCC Capacity Utilization (2010-2011) 3.3.1 Capacity Utilization by Country 52 3.3.2 Capacity Utilization by product group 53 3.3.3 Capacity Utilization by Value-chain 54 3.3.4 Basic Petrochemicals Capacity Utilization by Product 55 3.3.5 Polymers Capacity Utilization by Product 57 3.3.6 Fertilizers Capacity Utilization by Product 58 3.3.7 Worldwide Comparison of the GCC Capacity Utilization 59 3.3.8 Worldwide Comparison of the GCC Ethylene Capacity 60

    Utilization

  • Welcome to GPCAs first annual GCC Petrochemicals & Chemicals Industry Facts and Figures report which focuses on the GCC petrochemicals and chemicals industrys performance for the calendar year of 2011.

    This report provides an analysis of the historical growth and developments in the GCC petrochemicals and chemicals industry over the time span 2007-2011. Its scope covers capacity, production, international trade, sales revenue, employment and workforce nationalization. Further, the report sheds light on the growing global position of the GCC petrochemicals industry reflected by the steadily increasing production capacities and the resulting rising share of the GCC producers in the global petrochemicals trade.

    Undoubtedly this report would have not been possible without the continued support from our member companies and stakeholders who made available to GPCA key data and information used to prepare this publication. As an inaugural report, we acknowledge that certain sections require further attention and elaboration. We are committed to actively to further develop both the scope and content of future releases of the report.

    Finally, this publication demonstrates our commitment to provide useful reference publications for industry players such as analysts, researchers, policymakers and producers. Looking forward, GPCA plans to continue investing in developing relevant industry content in line with our objective to be the premier provider of industry knowledge and services to our members and stakeholders.

    Dr. Abdulwahab Al-SadounSecretary General

    A Message from the Secretary General

  • GCC Macroeconomic Indicators2

  • 6 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    8.9%contribution of manufacturing

    sector to GCC GDP in 2011

    17%contribution of petrochemicals to the manufacturing sectors

    share in 2011 GDP

    7.5%year-on-year growth of Real

    GDP in the GCC in 2011

    GCCeconomiesaredominatedbyoil&gassectorwhichcontributed50.6%totheGCCGDPin2011.Therevenuefromoil&gashasbeenprovidinganenormousboosttotherestoftheeconomy via government spending.

    Withinnon-oilindustry,manufacturingsectorscontributed8.9%totheregionalGDP.GCCmanufacturing sector leverages regions hydrocarbon reserves through oil refining and petrochemicals which accounted for 2.1% and 1.5% of the 2011 regional GDP respectively.

    Withinthemanufacturingsector,petrochemicalssharegrewrapidlyfrom13.9%in2007to17%in2011asaresultofthenewprojectsbeingbuiltandcommissioned.

    Petrochemicals sector contribution to the GDP is growing

    2.1 Contribution of the petrochemicals sector to regional and national GDP

    20.4% 18.7% 21.3% 22.5% 23.5%

    13.9% 17.3% 15.6%16.5% 17.0%

    65.7% 64.0% 63.1% 60.9%59.5%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    2007 2008 2009 2010 2011

    Other manufacturing Petrochemicals and chemicals Refining sector

    Con

    tribu

    tion

    to M

    anuf

    actu

    ring

    (%)

    GCC countries: Contribution of sub-sectors to manufacturing GDP (%)

    Source: GCC National statistical authorities and GPCA analysis, 2012

    50.6%

    5.4%

    7.1%

    4.9% 10%

    11.9%

    8.9%

    1.2%

    Crude Petroleum & Natural Gas

    Finance, Insurance, Real Estate & Business Services

    ConstructionOthers

    Wholesale & Retail Trade, Restaurants and Hotels

    Agriculture, Forestry & Fishing

    Transport, Storage &Communication

    Manufacturing

    Refining sector 2.1%

    Petrochemicals andchemicals 1.5%

    Othermanufacturing 5.3%

    GCC Countries: Contribution to GDP by main activities (% GDP, 2011)

    Source: GCC National statistical authorities and GPCA analysis, October 2012

  • 7Gulf Petrochemicals & Chemicals Association

    7.1% year-on-year growth of Real GDP in Saudi Arabia in 2011

    5.5%non-oil Real GDP growth in

    Saudi Arabia in 2011

    11%contribution of petrochemicals sector to manufacturing GDP

    in 2011

    50.1%

    4.3%

    5.2% 3.4% 7.5%

    17.2%

    9.8%

    2.5%

    Refining sector 3.2%

    Petrochemicals andchemicals 1.1%

    Othermanufacturing 5.5%

    Crude Petroleum & Natural Gas

    Finance, Insurance, Real Estate & Business Services

    Construction

    Others

    Wholesale & Retail Trade, Restaurants and Hotels

    Agriculture, Forestry & Fishing

    Transport,Storage &Communication

    Manufacturing

    Saudi Arabia : Contribution to GDP by main activities (% GDP, 2011)

    Source: Saudi Arabia Central Department of Statistics and Information and GPCA Analysis, 2012

    SaudiArabiaisthelargesteconomyintheGCCaccountingfor43%oftheGCCGDP. Thepaceofeconomicexpansionin2011reached7.1%,andthenon-oileconomygrewby8%

    -thehighestsince1981. EconomicdevelopmentofSaudiArabiaismarkedbythemajorroleoil&gassectorisplaying

    in generating GDP and financing government expenditure. In order to decrease reliance on oil, the Saudi government focused on economic diversification centered on manufacturing sector which include oil refining and petrochemical production.

    In2011manufacturingGDPaccountedfor9.8%ofSaudiArabiasGDP.Ofthis9.8%theoilrefiningsectorcontributed34%andthepetrochemicalssectorcontributed11%.

    2.1.2 Contribution of the petrochemical sector to regional and national GDP

    Petrochemicals accounted for 11% of Saudi Arabias manufacturing sector contribution to 2011 GDP

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    2007 2008 2009 2010 2011

    Source: Saudi Arabia Central Department of Statistics and Information and GPCA Analysis, 2012

    Other manufacturing Petrochemicals and chemicals Refining sector

    Con

    tribu

    tion

    to M

    anuf

    actu

    ring

    (%)

    33.7% 31.3% 31.7% 34.0% 34.0%

    10.5% 12.0% 10.6% 11.0% 11.0%

    55.8% 56.6% 57.7% 55.0% 55.0%

    Saudi Arabia: Contribution of sub-sectors to manufacturing GDP (%)

  • 8 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    7.4%contribution of

    manufacturing sector to GCC GDP in 2011

    5.2%year-on-year growth of Real

    GDP in the UAE in 2011

    18.2%contribution of

    petrochemical sector to manufacturing GDP in 2011

    Refining sector 0.7%Petrochemicals andchemicals 1.3%

    Othermanufacturing 5.4%

    35.5%

    9.7%

    12.5%

    7.4%14.5%

    12.2%

    7.4%

    0.8%

    Crude Petroleum & Natural Gas

    Finance, Insurance, Real Estate & Business Services

    Construction

    OthersWholesale & Retail Trade, Restaurants and Hotels

    Agriculture, Forestry & Fishing

    Transport, Storage &Communication

    Manufacturing

    UAE: Contribution to GDP by main activities (% GDP, 2011)

    Source: UAE Statistical Bureau, Abu Dhabi Statistical Department and GPCA Analysis, 2012

    UAEeconomyisthesecondlargestGCCeconomiesaftertheSaudieconomy.Aftertheeconomiccrisis,UAEeconomyisgraduallyrecoveringachieving5.2%growthrateofaRealGDP in 2011.

    UAEeconomymanagedtograduallymoveawayfrombeingoil-basedeconomytodiversifytonon-oilmanufacturingandservicesectors.Non-oilsectoraccountedfor64.5%oftheUAEsGDPin2011withmanufacturingsectorrepresenting7.4%.

    Petrochemicals sector accounted for 18.2% of the manufacturing sectors contribution to the UAE GDP in 2011

    2.1.3 Contribution of the petrochemical sector to regional and national GDP

    Other manufacturing Petrochemicals and chemicals Refining sector

    UAE: Contribution of sub-sectors to manufacturing GDP (%)

    7.0% 7.2% 8.9% 8.9% 9.5%

    11.2% 11.5%17.1% 17.2% 18.2%

    81.8% 81.4%74.0% 73.9% 72.3%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    2007 2008 2009 2010 2011

    Cont

    ribut

    ion

    to M

    anuf

    actu

    iring

    (%

    )

    Source: UAE Statistical Bureau, Abu Dhabi Statistical Department and GPCA Analysis, 2012

  • 9Gulf Petrochemicals & Chemicals Association

    14.1%year-on-year growth of Real

    GDP in Qatar in 2011

    25.8%contribution of petrochemicals sector to manufacturing GDP

    in 2011

    10%to Qatar GDP in 2011

    Manufacturingcontributed

    Between2004and2011,withthedevelopmentofOil&GasactivitiesinQatar,itsGDPgrewatCAGRof27.5%.In2011aloneQatarsRealGDPgrewby14.1%year-on-year.Qatarisworlds largest exporter of liquefied natural gas (LNG) accounting for a quarter of LNG exports worldwide.Expansionintheproductionofgas-relatedproducts,LNGandcondensatescoupledwithincreasesinhydrocarbonpricesresultedin57.7%Oil&GascontributiontotheGDP in 2011.

    BesidesOil&Gassector,Qatarseconomicgrowthhelpedtomakesignificantinvestmentsindevelopingnon-oilsectorwhichresultedinincreasingeconomicreturnsfrommanufacturingsector,financialservicesandinfrastructuredevelopment.Asaresult,nominalGDPfornon-oilsectorgrewatCAGRof25.7%between2004and2011.Non-oilsectorscontributed42.3%totheGDPofQatarin2011.Manufacturingsectorcontributed10%totheRealGDP.

    Petrochemicals accounted for 25.8% of the manufacturing sectors contribution to Qatar GDP in 2011

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Other manufacturing Petrochemicals and chemicals Refining sector

    2007

    13.4%

    26.3%

    60.3%

    2008

    16.6%

    32.6%

    50.8%

    2009

    10.5%

    20.6%

    69.0%

    2010

    12.4%

    24.4%

    63.2%

    2011

    13.1%

    25.8%

    61.1%

    Cont

    ribut

    ion

    to M

    anuf

    actu

    iring

    (%

    )

    Qatar: Contribution of sub-sectors to manufacturing GDP (%)

    Source: Qatar Statistic Authority and GPCA Analysis, 2012

    2.1.4 Contribution of the petrochemical sector to regional and national GDP

    Refining sector 1.3%

    Petrochemicals andchemicals 2.6%

    Othermanufacturing 6.1%

    57.7%

    3.7%5.5%

    3.4%11.6%

    8.0%

    10%

    0.1%Crude Petroleum & Natural Gas

    Finance, Insurance, Real Estate & Business Services

    Construction

    Source: Qatar Statistic Authority and GPCA Analysis, 2012

    Others

    Wholesale & Retail Trade, Restaurants and Hotels

    Agriculture, Forestry & Fishing

    Transport, Storage &Communication

    Manufacturing

    Qatar: Contribution to GDP by main activities (% GDP, 2011)

  • 10 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    8.2%year-on-year growth of Real

    GDP in Kuwait in 2011

    10.6%contribution of petrochemicals to manufacturing GDP in 2011

    KuwaitsrealGDPgrowthin2011isestimatedataround8.2%,supportedbya15%increaseinoilproduction.Growthofnon-oileconomicactivityisestimatedataround4.5%in2011drivenbyhighergovernmentexpenditurewhichhasincreasedbyalmost20%inthe2011-2012fiscalyear.

    OilandGassectorcontinuestoaccountforthemajorityofKuwaitsGDPrepresenting62%ofreal GDP in 2011. Oil prices remained high based on strong demand from emerging economies and tight supply. Aside from contributing to national output, higher oil revenues helped to support government development plans. Among the plans goals is diversifying the economy away from hydrocarbons,whichisexpectedtoleadtoahighergrowthofthenon-hydrocarbonsector.

    Manufacturingsectorsaw5.1%growthin2011over2010levels.PetrochemicalscontributiontoKuwaitseconomyisestimatedat0.49%whichrepresents10.6%shareofmanufacturingGDP.

    Petrochemicals sector in Kuwait accounted for 10.6% of manufacturing sectors contribution to the countrys GDP in 2011

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Other manufacturing Petrochemicals and chemicals Refining sector

    Con

    tribu

    tion

    to M

    anuf

    actu

    ring

    (%)

    Kuwait: Contribution of sub-sectors to manufacturing GDP (%)

    2007

    19.3%

    6.0%

    74.6%

    2008

    18.9%

    7.3%

    73.8%

    2009

    36.0%

    12.0%

    52.0%

    2010

    34.1%

    11.0%

    54.9%

    2011

    32.7%

    10.6%

    56.7%

    Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012

    2.1.5 Contribution of the petrochemical sector to regional and national GDP

    62%

    1.7%3.7%

    5.7%10%

    12.1%

    4.7%

    0.25%

    Refining sector 1.5%

    Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012

    Petrochemicals andchemicals 0.49%Othermanufacturing 2.7%

    Crude Petroleum & Natural Gas

    Finance, Insurance, Real Estate & Business Services

    Construction

    Others

    Wholesale & Retail Trade,Restaurants and Hotels

    Agriculture, Forestry & Fishing

    Transport, Storage &Communication

    Manufacturing

    Kuwait: Contribution to GDP by main activities (% GDP, 2011)

    4.7%of Kuwaits GDP in 2011

    Manufacturingaccounted for

  • 11Gulf Petrochemicals & Chemicals Association

    5.4%year-on-year growth of Real

    GDP in Oman in 2011

    53.2%53.2% contribution of

    petrochemicals sector to manufacturing GPD

    TheOmanieconomyhasgrownstronglysince2009drivenbyincreasedgovernmentspendingandhigheroilprices.In2011RealGDPgrewby5.4%,upfrom4%growthin2010and 1.1% in 2009.

    TheOmanigovernmentisplacingagreatemphasistoeconomicdiversificationtoensurealternativesourcesofincome.Overthepastyearnon-oilGDPgrewby6.4%comparedwithoil&gasGDPgrowthof3.8%.

    Manufacturingsectorcontributed10.3%totherealGDPofOmanin2011ofwhichpetrochemicals accounted for 53.2%

    Petrochemicals sector accounted for 53.2% of the manufacturing sectors contribution to Omans GDP in 2011

    2.1.6 Contribution of the petrochemical sector to regional and national GDP

    10.3%of Omans GDP in 2011

    Manufacturingcontributed

    50.9%

    4.8%

    7.9%

    5.3% 7.6%

    12.1%

    10.3%

    1.1%

    Refining sector 0.8%

    Petrochemicals andchemicals 5.5%

    Othermanufacturing 4.0%

    Crude Petroleum & Natural Gas

    Finance, Insurance, Real Estate & Business Services

    Construction Others

    Wholesale & RetailTrade, Restaurants

    and Hotels

    Agriculture, Forestry & Fishing

    Source: Oman National Center for Statistics and Information and GPCA Analysis, 2012

    Transport, Storage &Communication

    Manufacturing

    Oman: Contribution to GDP by main activities (% GDP, 2011)

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Source: Oman National Center for Statistics and Information and GPCA Analysis, 2012

    Other manufacturing Petrochemicals and chemicals Refining sector

    Cont

    ribut

    ion

    to M

    anuf

    actu

    iring

    (%

    )

    Oman: Contribution of sub-sectors to manufacturing GDP (%)

    2007

    7.3%

    59.6%

    33.0%

    2008

    4.8%

    65.7%

    29.5%

    2009

    6.9%

    50.9%

    42.2%

    2010

    7.4%

    53.7%

    38.9%

    2011

    7.3%

    53.2%

    39.4%

  • 12 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    2.1%year-on-year growth of Real

    GDP in Bahrain in 2011

    4.6%contribution of petrochemicals sector to manufacturing GDP

    in 2011

    16.4%of Bahrains GDP in 2011

    Manufacturingcontributed

    RealGDPgrowthinBahrainin2011reached2.1%,downfrom4.1%in2010duetotheweaknesses in the financial and tourism sectors.

    ComparedwithotherGCCstates,theeconomyofBahrainisdiversifiedwithmanufacturingsectoraccountingfor16.4%oftheGDPin2011.OilrefineryandaluminumarethebiggestelementsofmanufacturingoutputinBahrainwithpetrochemicalsrepresenting4.6%ofthemanufacturing GDP.

    Petrochemicals sector accounted for 4.6% of the manufacturing sectors contribution to GDP of Bahrain in 2011

    2.1.6 Contribution of the petrochemical sector to regional and national GDP

    29.2%3.6%

    8.1%

    6.8%

    19.3%16.2%

    16.4%

    0.4%

    Refining sector 2.3%

    Petrochemicals andchemicals 0.8%

    Othermanufacturing 13.3%

    Crude Petroleum & Natural Gas

    Finance, Insurance,Real Estate

    & Business Services

    Construction

    Others

    Wholesale &Retail Trade,Restaurants

    and Hotels

    Agriculture, Forestry & Fishing

    Transport,Storage &

    Communication

    Manufacturing

    Bahrain: Contribution to GDP by main activities (% GDP, 2011)

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Other manufacturing Petrochemicals and chemicals Refining sector

    Con

    tribu

    tion

    to M

    anuf

    actu

    ring

    (%)

    Bahrain: Contribution to sub-sectors to manufacturing GDP (%)

    2007

    12.2%

    3.8%

    84.0%

    2008

    10.5%

    4.1%

    85.4%

    2009

    11.6%

    3.9%

    84.5%

    2010

    10.0%

    3.2%

    86.7%

    2011

    14.2%

    4.6%

    81.2%

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

  • 13Gulf Petrochemicals & Chemicals Association

    33%year-on-year growth

    of GCC petrochemicals export value

    55.8million tons of

    petrochemicals were exported from GCC in 2011

    Petrochemicalandrelatedproductsaccountforalmosthalfofnon-oilexportsfromtheGCCinvalue and volume terms. In 2011 total value of chemical and related products exported from theGCCequaledUS$44.7bnwhichis55.8milliontons

    Whileexportvolumegrewbyonly6%,duetotheincreaseinpricesformostofthecommodities including chemicals in 2011, export value from the GCC grew by 33% due to strong petrochemicals prices in 2011.

    Petrochemicals and chemicals accounted for 43% of GCCs non-oil exports in 2011

    2.2.1 Share of Petrochemicals in non-oil exports on regional and national levels

    Share of petrochemicals and chemicals in non-oil exports in the GCC, US$ bn

    Petrochemicals Other non-oil exports

    43%US$ 44.7 bn

    57%US$ 60.5 bn

    41%US$ 33.7 bn

    59%US$ 47.8 bn

    2010Total: US$ 81.5 bn

    2011Total: US$ 105.2 bn

    Source: GCC National statistical authorities and GPCA Analysis, 2012

    Share of petrochemicals and chemicals in non-oil exports in the GCC, million tons

    43%55.8 Million

    Tons

    57%72.8 Million

    Tons

    2011Total: 128.6 Million Tons

    2010Total: 117.2 Million Tons

    45%52.6 Million

    Tons

    55%64.6 Million

    Tons

    Petrochemicals Other non-oil exports

    Source: GCC National statistical authorities and GPCA Analysis, 2012

    44.7bn worth of petrochemicals were

    exported from GCC in 2011

    US$

  • 14 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    35.2 million tons of chemicals and

    related products were exported from Saudi Arabia in 2011

    30.7bn worth of chemicals and related

    products exports from Saudi Arabia in 2011

    US$ ValueofSaudiArabiaspetrochemicalsandchemicalsexportsroseby40%in2011fromayear

    earlier driven by higher prices and increasing demand. SaudiArabiashipped35.2milliontonsofpetrochemicalsandchemicalsin2011whichis6%

    higher than in the previous year.

    Petrochemicals and chemicals exports accounted for 72% of Saudi Arabias non-oil export value in 2011

    2.2.2 Share of Petrochemicals in non-oil exports on regional and national levels

    Share of petrochemicalsand chemicals in non-oil exports in Saudi Arabia, %

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    2011 Non-Oil Export ValueTotal: US$ 47 bn

    72%US$ 35.2 bn

    28%US$ 13.5 bn

    2011 Non-oil Export VolumeTotal: 48.7 Million Tons

    65%US$ 30.7 bn

    35%US$ 16.4 bn

    Source: Saudi Arabia Central Department of Statistics & Information and GPCA Analysis, 2012

    Source: Saudi Arabia Central Department of Statistics & Information and GPCA Analysis, 2012

  • 15Gulf Petrochemicals & Chemicals Association

    21%year-on-year growth of UAE

    chemicals and related products export value in 2011

    TheroleofpetrochemicalsandchemicalsintheUAEnon-oilexportsismarginalrepresenting9%ofthetotalnonoilexportvaluein2011orUS$2.7bn.Thisis21%increasefrom the year before.

    Intermsofvolume,petrochemicalsandchemicalsaccountedfor7%ofthenon-oilexports.ThemajorityofpetrochemicalsandchemicalsareexportedfromtheEmirateofAbuDhabi.ThepetrochemicalsshareofexportsfromAbuDhabiis24%whichishigherthanthepetrochemicalsshareofexportsforthewholeUAE

    Petrochemicals exports accounted for a minor share of UAEs non-oil exports in 2011

    2.2.3 Share of Petrochemicals in non-oil exports on regional and national level

    Share of petrochemicals and chemicals in non-oil exports in the UAE, %

    Source: UAE Statistical Bureau, 2012

    Source: Abu Dhabi Statistical Department, 2012

    2011 Non-Oil Export ValueTotal: US$ 31bn

    2011 Non-Oil Export VolumeTotal: 24.3 Million Tons

    7%1.7 Million

    Tons

    93%22.5 Million

    Tons

    9%US$ 2.7 bn

    91%US$ 28.3 bn

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    65%US$ 30.7 bn

    Shape of petrochemicals & chemicals in non-oil exports in Abu Dhabi, %

    Source: UAE Statistical Bureau, 2012

    2011 Non-oil export valueTotal: US$ 3.1 bn

    24%US$ 757 mn

    76%US$ 2.4 bn

    Petrochemicals Other non-oil exports

  • 16 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    46%increase in petrochemicals

    and chemicals export value in 2011

    Totalvalueofnon-oilexportsfromQatarin2011isestimatedatUS$7.9bnoutofwhich69%are petrochemicals and chemicals. Compared with the previous year, petrochemicals exports fromQatargrewby46%invalueterms.

    Non-oilexportvolumein2011was11.5milliontonswhichisanincreaseof14%fromtheyearbefore.Petrochemicalsandchemicalscontributed65%tothevolumeofnon-oilexportsfromQatar in 2011.

    Petrochemicals and chemicals exports accounted for 69% of Qatars non-oil export value in 2011

    Share of petrochemicals and chemicals in non-oil exports in Qatar, %

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    Source: Qatar Statistical Department and GPCA Analysis, 2012

    Source: Qatar Statistical Department and GPCA Analysis, 2012

    2011 Non-Oil Export VolumeTotal: 11.5 million tons

    2011 Non-Oil Export ValueTotal: US$ 7.9 bn

    69%US$ 5.4 bn

    31%US$ 2.5 bn

    65%7.5 Million Tons

    35%4 Million Tons

    2.2.4 Share of Petrochemicals in non-oil exports on regional and national levels

  • 17Gulf Petrochemicals & Chemicals Association

    66%year-on-year increase of petrochemicals and

    chemicals export value from Kuwait in 2010

    LatestavailabledataonKuwaitexportshowsthatpetrochemicalsandchemicalsexportsaccountfor48%ofnon-oilexportvaluein2010.Thisisanincreaseof66%from2009data.Volume wise the share of petrochemicals and chemicals exports in 2010 reached 61% or 3.9 milliontons.Comparedtotheexportvolumeinthepreviousyearthisisanincreaseof38%.

    Petrochemicals and chemicals exports accounted for 61% of Kuwaits non-oil export volume in 2010*

    2.2.5 Share of Petrochemicals in non-oil exports on regional and national levels

    Share of petrochemicals and chemicals in non-oil exports in Kuwait, %

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    Source: Kuwait Customs Authority

    2010 Non-Oil Export ValueTotal: US$ 6.7 bn

    48%US$ 3.2 bn

    52%US$ 3.5 bn

    2010 Non-Oil Export VolumeTotal: 6.5 million tons

    61%4 Million Tons

    39%2.5 Million Tons

    *Note: Latest available statistics for foreign trade in Kuwait is for 2010

    Source: Kuwait Customs Authority*Note: Latest available statistics for foreign trade in Kuwait is for 2010

  • 18 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    71%year-on-year increase in petrochemicals and

    chemicals exports from Oman in 2010

    Omansawthevalueofitsnon-oilexportsrisetoUS$6.4bnin2010whichisanincreaseof32%fromtheyearbefore.Petrochemicalsandchemicalsaccountedfor39%ofnon-oilexportvalueinthesameyearpostinganincreaseof71%from2009level.

    Petrochemicals and chemicals exports accounted for 39% of Omans non-oil export value*

    2.2.6 Share of Petrochemicals in non-oil exports on regional and national levels

    Share of petrochemicals and chemicals in non-oil exports in Oman, %

    Source: Oman National Centre for Statistical Department and information and GPCA Analysis, 2012

    * - Note: Latest available statistics for foreign trade in Oman is for 2010

    Source: Oman National Centre for Statistical Department and information and GPCA Analysis, 2012

    * - Note: Latest available statistics for foreign trade in Oman is for 2010

    2010 Non-Oil Export ValueTotal: US$ 6.4 bn

    39%US$ 3.9 bn

    61%US$ 2.5 bn

    2010 Non-Oil Export VolumeTotal: 24 Million Tons

    26%6.2 Million Tons

    74%17.8 Million Tons

    Petrochemicals Other non-oil exports

  • 19Gulf Petrochemicals & Chemicals Association

    50%year-on-year increase in

    petrochemicals and chemicals export volume in 2011

    TotalvalueofnonoilexportinBahrainreachedUS$6.1bnin2011ofwhich4.1%arepetrochemicals and chemicals exports. Compared to the previous year, the value of petrochemicals exports from Bahrain has increased by 50%.

    Volumewise,non-oilexportsfromBahrainreached13.5milliontonswhichisanincreaseof30%fromtheyearbefore.Petrochemicalsandchemicalscontributed8.6%tonon-oilexportvolume.

    Petrochemicals and chemicals exports accounted for 8.6% of Bahrains non-oil export volume in 2011

    2.2.7 Share of Petrochemicals in non-oil exports on regional and national levels

    Share of petrochemicals and chemicals in non-oil exports in Bahrain, %

    2011 Non-Oil Export VolumeTotal: 13.5 Million Tons

    2011 Non-Oil Export ValueTotal: US$ 6.1 bn 4.1%

    US$ 0.3 bn

    95.9%US$ 5.8 bn

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    8.6%1.2 Million Tons

    91.4%12.3 Million Tons

    26%6.2 Million Tons

  • 3GCC Petrochemicals Industry Profile3GCC Production Capacity by Product (2007-2011)GCC Production Capacity by Country (2007-2011)GCC Capacity Utilization (2010-2011)GCC Capacity Additions (2010-2011)

  • 22 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    In2011,GCCbasicpetrochemicalscapacityreached45.4milliontonsperannumwhichaccountsfor38%ofthetotalcapacityoftheregionalpetrochemicalsindustry.Between2007and 2011 regional capacity to produce basic petrochemicals has been expanding at compound annualgrowthrate(CAGR)of13.4%.

    GCCfertilizercapacityin2011wasestimatedat27.4milliontonsperannum.Thisis51%higherthanin2007.From2007-2011CAGRoffertilizersectorintheregionwas10.8%

    In2011regionalcapacityforproductionofpolymersaccountedfor16.8%or20.4milliontonsperannum.In2011GCCpolymerscapacitygrewby4%,howeverthe2007-2011CAGRforpolymers capacity was 16.5%.

    Chemicalproductsaccountedfor14.3%ofthetotalGCCpetrochemicalscapacityin2011andreached17.2milliontonsperannum.From2007-2011chemicalscapacitygrewatCAGRof9.8%,howevertheyear-on-yeargrowthoftheGCCchemicalscapacityin2011was6%.

    GCCcapacityforproductionofintermediatepetrochemicalsaccountedfor8.2%ofthetotalGCCpetrochemicalscapacity.21%CAGRoftheGCCcapacityforproductionofintermediatesis the highest among other product categories. In 2011 alone, capacity of intermediates rose by 11% over the previous year.

    Specialtiescontinuetoaccountfortheminorshareof0.5%ofthetotalpetrochemicalscapacity.

    6.9

    0

    20

    40

    60Mill

    ion

    Tons

    80

    100

    120

    140

    26.6

    18.2

    11.111.94.673 76

    92

    2007

    27.3

    18.2

    11.211.96.9

    2008

    32.5

    19.5

    16.2

    14.88.3

    2009

    110

    44.3

    20.1

    19.6

    16.38.9

    2010

    121

    45.4

    27.4

    20.4

    17.29.9

    2011

    Basic Fertilizers Polymer Chemical Intermediate Specialities

    GCC Petrochemicals Capacity by Product Group, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    CAGR: 13.4%

    37.5 %Basic Petrochemicals

    account for

    of the total GCC petrochemicals capacity

    36%year-on-year growth of fertilizers capacity

    in 2011

    77% of GCC petrochemicals capacity is represented by basic petrochemicals, fertilizers and polymers

    3.1.1 GCC Capacity: Breakdown by Product Groups

    11%year-on-year growth of intermediates capacity

    in 2011

  • 23Gulf Petrochemicals & Chemicals Association

    From2007-2011intermediatesandpolymerssawthehighestCAGRof21.4%and16.5%respectively.

    TheGCCcapacityexpansionindexcovering2007to2011revealsthattheregionalcapacityto produce basic petrochemicals, intermediates and polymer products expanded at stronger rate than the regions overall petrochemicals index.Capacity expansion index for intermediates reached217pointsin2011-thisishighestamongallproductgroups.2011Polymerscapacityexpansionindexof184isthesecondhighest.ExpansionofbasicpetrochemicalsintheGCCbetween2007and2011broughtitsindexto171points.Althoughitdidimproveto151pointsin2011,fertilizerscapacityexpansionindexismuchlowerthantheoverallGCCindex.

    GCC Petrochemicals Capacity by Product Group, %

    2007Total: 73 Million Tons

    2011Total: 121 Million Tons

    36.4%

    24.9%

    15.2%

    16.2%

    6.2%

    1%

    Basic Fertilizers Polymer Chemical Intermediate Specialities

    37.5%

    22.7%

    16.8%

    14.3%

    8.2%

    0.5%

    Source: GPCA Petrochemicals Database, October 2012

    GCC Petrochemicals Capacity Growth by Product Groups (CAGR, 2007-2011)

    Source: GPCA Petrochemicals Database, October 2012

    21.4%

    Intermediate

    16.5%

    Polymer

    14.3%

    Basic

    10.8%

    Fertilizers

    9.8%

    Chemical -4.4%Specialities

    All products CAGR: 13.4%

    0

    10

    -10

    20

    30

  • 24 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    75%Over

    of the GCC petrochemicals capacity in 2011 is attributable

    to Ethylene (44%) and Methane products (32%)

    ThemajorityofGCCpetrochemicalscapacityisbasedonMethane(C1)andEthylene(C2).In2011theyaccountedfor76%ofthetotalregionalbasiccapacity.WhileC1andC2capacitiesalready represent a significant share of the regional petrochemicals industry, they continue to grow. In 2011 Methane (C1) capacities grew by 13% over 2010 levels and Ethylene (C2) capacities grew by 9%.

    Propylene(C3)productchainrepresents15%ofthetotalpetrochemicalscapacityintheGCC.ShareofC3productshassignificantlyincreasedoverthepast5yearsfrom10%in2007tothecurrent15%.In2011Propylene(C3)productsgrewbyonly2%,howeverthe2007-2011compoundannualgrowthrate(CAGR)forpropyleneproductsis24.1%whichisthesecondonly to aromatics.

    AromaticscapacityintheGCCgrewatCAGR26%between2007and2011.Thisisthehighest growth if compared with GCC capacity growth of other product chains. In 2011, share ofaromaticsinthetotalGCCpetrochemicalscapacityreached8%upfrom5%in2007.

    Analyzing2011capacityexpansionindexbasedon2007being100,weobservethatAromatics and Propylene (C3) products reach highest levels among other value chains. Aromaticsindexroseto252followedcloselybyPropylene(C3)indexof237points.Capacityexpansion index of these two products is much higher than overall GCC capacity expansion index in 2011 of 166 points. Index related to GCC capacity of Ethylene (C2) products was slightly above the overall index. This trend continued in 2011 when Ethylene (C2) capacity expansionindexgrewto176points.

    Since 2007 aromatics and propylene have been rapidly expanding at CAGR 26% and 24% respectively

    3.1.2 GCC Capacity: Breakdown by Value-chain

    GCC Petrochemicals Capacity by Value Chain, Million Tons

    0

    20

    40

    60

    80

    100

    120

    140

    30.3

    30.0

    7.44.0

    2007

    73

    30.2

    31.4

    8.15.0

    76

    2008

    32.5

    38.6

    13.2

    6.2

    92

    2009

    34.2

    48.4

    17.3

    8.7

    110

    2010

    38.7

    52.8

    17.6

    10.1

    121

    2011

    Mill

    ions

    Ton

    s

    C1 Methane C2 Ethylene C3 Propylene C4 Butadiene Aromatics

    Source: GPCA Petrochemicals Database, October 2012

    CAGR: 13.4%

  • 25Gulf Petrochemicals & Chemicals Association

    30%y-o-y grwoth of GCC

    Butadiene produces value chain in 2011

    26%Capacity of GCC

    Aromatics products value chain grew at CAGR

    (2007 - 2011)

    GCC Petrochemicals Capacity Growth by Value Chain (CAGR, 2007-2011)

    Source: GPCA Petrochemicals Database, October 2012

    Total products CAGR: 13.4%26.0 %

    Aromatics

    24.1 %

    C3 Propylene

    15.2 %

    C2 Ethylene

    7.1 %

    C4 Butadiene

    6.3 %

    C1 Methane

    GCC Petrochemicals Capacity by Value Chain, %

    32%

    44%

    15%

    1%8%

    2007Total:73 Million Tons

    41%

    41%

    10%2%

    6%

    2011Total: 121 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    C1 Methane C2 Ethylene C3 Propylene C4 Butadiene Aromatics

  • 26 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    Ethylene, methanol and propylene

    collectively account for

    88% of total basic

    petrochemicals capacity

    Ethylenecapacityrepresents49%oftheGCCbasicpetrochemicalscapacity.Regionalcompaniescontinuedtoexpandtheirethylenecapacitiesbetween2007and2011atCAGR15%.

    MethanolisthesecondlargestbasicpetrochemicalproducedintheGCCaccountingfor22%of the total basic petrochemicals capacity. No significant capacity additions of Methanol were reportedintheGCCbetween2007and2011resultingatCAGRofonly4%.

    Regionalcapacityofpropylenereached7.7milliontonsperannumin2011accountingfor17%ofbasicpetrochemicals.Between2007and2011GCCpropylenecapacitywasgrowingatCAGRof27%,oneofthehighestamongotherbasicpetrochemicals.

    Theshareofbenzeneintheregionalcapacityofbasicpetrochemicalsin2011remainsmodestat6%.Eventhough,benzenecapacitywasgrowingatCAGRof13%,itsshareremainonparwiththe2007levelwhichwas7%ofthetotal.

    Mixedxylenesrepresent5%oftheregionalcapacityofbasicpetrochemicals.Capacitygrowthoftheseproductsbetween2007and2011stoodat50%whichisthehighestamongotherbasic petrochemicals.

    GCCCapacityofButadieneaccountedfor1%oftotalcapacityofbasicpetrochemicalsin2011.

    In 2011, the GCC basic petrochemicals production capacity was 45.4 million tons p.a.

    3.1.3 Basic Petrochemicals

    GCC Basic Petrochemicals Capacity by Product, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    12.4

    26.4

    8.4

    3.01.8

    2007

    27.2

    12.4

    8.4

    3.52.0

    2008

    32.6

    14.7

    8.7

    5.3

    2.2

    2009

    44.4

    21.6

    9.8

    7.5

    2.9

    2010

    45.4

    22.3

    9.9

    7.7

    2.9

    2011

    Ethylene Methanol Propylene Benzene Mixed Xylenes Butadiene Toluene

    CAGR 15%

    Mill

    ions

    Ton

    s

  • 27Gulf Petrochemicals & Chemicals Association

    Ethylenerepresents

    nearly half of the GCC basic

    petrochemicals production

    capacity

    GCC Petrochemicals Capacity by Product, Share %

    Source: GPCA Petrochemicals Database, October 2012

    2007Total: 26.2 Million Tons

    47%

    32%

    11%

    7%

    2%1%

    Ethylene Methanol Propylene Benzene Mixed XylenesButadiene Toluene

    2011Total: 45.4 Million Tons

    49%

    22%

    17%

    6%5%

    1%

    GCC Basic Petrochemicals Capacity Growth by Product, CAGR (%)

    Source: GPCA Petrochemicals Database, October 2012

    0%

    Butadiene

    0%

    TolueneMixed Xylenes

    50%

    27%

    Propylene

    16%

    Ethylene

    13%

    Benzene

    4%

    Methanol

    Basic PetrochemicalsCAGR: 15%

    0

    20

    40

    60

  • 28 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    GCC Fertilizers capacity by product, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    10.1 10.1 10.7 11.3 12.7

    7.6 7.6 8.38.3

    11.40.5 0.5 0.50.5

    3.4

    0

    5

    10

    15

    20

    25

    30

    18.2 18.2 19.520.1

    27.4

    2007 2008 2009 2010 2011

    Mill

    ions

    Ton

    s

    Urea Ammonia Diammonium phosphate (DAP)

    CAGR 11%

    CapacityexpansionoffertilizerproductshasrecentlybecomeafocusforGCCstates.Themajorityofnewfertilizerscapacitieswereaddedin2011.In2011regionalfertilizerscapacitygrewby36%y-o-y.

    In2011theureaproductioncapacityofGCCcountriesreached12.7milliontoneswhichrepresents46%ofthetotalfertilizerscapacityintheregion.Withthegradualexpansionofureacapacitiesoverthepastyears,ureasCAGRof6%islowerthan11%growthrateoffertilizersintotal.

    ShareofAmmoniaintheregionalcapacityoffertilizershasbeensteadyat42%.In2011GCCcountrieswereabletoproduce11.4milliontonesofammonia.

    Productioncapabilitiesofdiammoniumphosphates(DAP)intheregionhavebeenlimiteduntil 2011 when a significant capacity of diammonium phosphates (DAP) was brought on stream.WiththenewcapacityadditionsshareofDAPinthetotalfertilizerscapacityin2011roseto12%.DAPscapacityexpansionindexreached680pointsin2011thehighestofallfertilizers.

    Ammonia and DAP expansions accounted for the majority of fertilizers capacity additions in 2011

    3.1.4 Fertilizers

    36%year-on-year increase of GCC

    fertilizers capacity in 2011

    Urea accounts for

    46%of the GCC fertilizers capacity

    Share of DAP capacity increased to

    12%of the GCC fertilizers capacity

  • 29Gulf Petrochemicals & Chemicals Association

    GCC Fertilizers Capacity by Product, Share (%)

    2007Total: 18.2 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    2011Total: 27.4 Million Tons

    55%42%

    3%

    46%

    42%

    12%

    Urea Ammonia Diammonium phosphate (DAP)

    GCC Fertilizers capacity growth by product, CAGR (%)

    Source: GPCA Petrochemicals Database, October 2012

    Fertilizers CAGR: 11%

    61 %

    11 % 6 %

    DiammoniumPhosphate (DAP)

    Ammonia Urea

  • 30 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    95%of the GCC polymers

    capacity in 2011

    Polyethylene and Polypropylene represent

    Regional polyethylene capacity expanded at CAGR

    12.4%

    Regional polypropylene capacity expanded at CAGR

    24.8%2007 - 2011

    TotalGCCcapacityofpolymersproductionfacilitiesreached20.4milliontonsin2011. PolyethylenehasthelargestpolymerproductioncapacityintheGCCaccountingfor57%of

    the total polymers capacity in 2011. SecondlargestpolymerproductioncapacityintheGCCispolypropylene(PP)which

    represents37%oftheregionalpolymerscapacity. From2007-2011,theGCCshavesignificantlyexpandedtheirpolymerproductsportfolio.In

    2007productionofpolymerswaslimitedtofourproducts,in2011therearesevenpolymerproducts produced in the GCC. New products include Polycarbonate (PC).

    Whilenewpolymerproductsarebeingaddedtothecurrentproductportfolio,capacitiesofthecurrentproductsarealsoexpanding.In2007-2011regionalpolypropylene(PP)capacityhadthehighestgrowthofCAGR24.8%whiletheCAGRforpolyethylenecapacitywas12.4%.

    GCC polymers production is concentrated around polyethylene and polypropylene production however new products are being added

    3.1.5 Polymers

    GCC Polymers capacity by product, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    7.4 7.39.9 11.4

    11.8

    3.1

    11.1 11.2

    16.2

    19.6 20.4

    3.4

    5.7

    7.6 7.6

    0

    5

    10

    15

    20

    25

    2007 2008 2009 2010 2011

    Mill

    ion

    Tons

    Polyethylene PP PVC PC PS PET EPS

    CAGR: 16.5%

    GCC Polymers capacity by product, Share (%)

    Source: GPCA Petrochemicals Database, October 2012

    2007Total : 11.1 Million Tons

    67%

    28%

    4%1%

    2011Total: 20.4 Million Tons

    37%

    2%2%1%

    1%

    57%

    Polyethylene PP PVC PC PS PET

    2007 - 2011

  • 31Gulf Petrochemicals & Chemicals Association

    GCCcapacitytoproduceintermediateproductsin2011reached9.9milliontonsperannum.Since2007GCCcapacityofintermediateproductswasexpandinggraduallywithcapacityadditionstakingplaceeveryyear.Compoundannualgrowthrate(CAGR)ofintermediateproductscapacityexpansionbetween2007and2011is21.4%.

    LargestintermediateproductsproducedintheGCCareethyleneoxide(EO)andstyrenemonomer which account for 69% of the regional capacity of intermediate products. Whiletheyarethelargestintermediateproductsintheregion,therehavebeensignificantcapacityadditionsofethyleneoxide(EO)andstyrenemonomeraswell.From2007-2011Ethyleneoxide(EO)capacityexpandedatCAGR16.2%andstyrenemonomerexpandedatCAGRof22.6%overthesameperiod.

    Alongwiththeincreaseincapacityofindividualproducts,theGCCproductportfolioofintermediateproductshasalsobeenincreasing.Since2007,thenumberofintermediateproducts in the GCC has almost doubled. In 2011 GCC states were able to produce nine intermediate products. New intermediate products which started production between 2007and2011includeBisphenolA(BPA),Cumene,VinylAcetatemonomer(VAM)andPropylene Oxide (PO)

    GCC countries expanding and diversifying their intermediate products capacities

    3.1.6 Intermediates

    69%of the GCC intermediate

    products capacity

    Ethylene oxide (EO) and Styrene Monomer

    represent

    GCC capacity of intermediate products expanded at CAGR of

    21.4%GCC Intermediates capacity by product, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    2.4

    4.6

    6.9

    8.38.9

    9.9

    3.9 4.3 4.3 4.31.1

    1.92.3 2.4 2.4

    1

    0.7

    0.70.7 0.7

    0.7

    0

    2

    4

    6

    8

    10

    2007 2008 2009 2010 2011

    Mill

    ions

    Ton

    s

    Ethylene oxide (EO) Styrene Monomer Bisphenol A (BPA)VCM Cumene EDCVAM Propylene Oxide (PO) 1-hexene

    CAGR 21.4%

    GCC Intermediates capacity by product, share2007

    Total: 4.6 Million Tons2011

    Total: 9.9 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    67%

    52%

    24%

    14%

    9%

    Ethylene oxide (EO) Styrene Monomer

    Bisphenol A (BPA) VCMCumene EDC

    VAM

    Propylene Oxide (PO)1-hexene

    44%

    25%

    9%

    7%

    6%4%

    3%2%

    2007 - 2011

  • 32 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    3.1.7 Top 10 Products in GCC Petrochemicals Capacity

    GCCethylenecapacityislargestamongotherproductsandaccountedfor19%oftheregionalpetrochemicals capacity in 2011. Among the top 10 products, three are basic petrochemicals: ethylene, methanol and propylene. Together they account for 33% of the regional petrochemicals capacity.

    UreaisthesecondlargestproductintheGCCandaccountedfor10%oftheregionalcapacity.Fertilizers(urea,ammoniaandDAP)areamongthetop10productsintheregionaccountingfor 23% of the regional capacity.

    Onlytwopolymerproductsarewithintop10:polyethyleneandpolypropylenewhichaccountfor 10% and 6% respectively of the regional petrochemicals capacity.

    Onlytwoofthechemicalsproductsareinthetop10products:MonoethyleneGlycol(MEG)andMethyltert-butylether(MTBE)accountingfor6%and3%respectivelyoftheGCCtotalpetrochemicals capacity.

    Ofthe10productsDiammoniumphosphate(DAP),Propylene,PolypropyleneandEthylenegrewathigherratebetween2007and2011thanthe13%capacitygrowthoftheGCCpetrochemicalssector.DAPsCAGRof61%wasthehighestamongallotherproducts.

    Top 10 products account for 81% of the GCC petrochemcals capacity

    Top 10 Products Based on 2011 Petrochemicals Capacity, Share %

    Source: GPCA Petrochemicals Database, October 2012

    2011Total: 121 Million Tones

    China Asia (Without China)Europe North America

    GCC South AmericaAfrica The rest of World

    19%

    11%

    10%

    9%8%6%

    6%

    6%

    3%3%

    19%

    Ethylene

    Urea

    Polyethylene

    Ammonia

    Methanol

    Propylene

    Polypropylene (PP)

    Monoethylene Glycol (MEG)

    Methyl tert-butyl ether (MTBE)

    Diammonium phosphate (DAP)

    Others

    Top 10 Products by Capacity Growth (CAGR 2007-2011)

    Source: GPCA Petrochemicals Database, October 2012

    61.5 %

    DAP

    27 %

    Prop

    ylen

    e

    24.8 %

    Poly

    prop

    ylen

    e

    15.7 %

    Ethy

    lene

    12.4 %

    Poly

    ethy

    lene

    10.6 %

    Amm

    onia

    10.3 %

    MEG

    5.8 %

    Urea

    2.1 %

    MTB

    E

    Met

    hano

    l

    4.1 %

    All products CAGR: 13.4%

    19% of the regional

    petrochemicals capacity

    Ethylene accounts for

    11% of the regional

    petrochemicals capacity

    Urea accounts for

    10% of the regional

    petrochemicals capacity

    Polyethyleneaccounts for

  • 33Gulf Petrochemicals & Chemicals Association

    GCCshareintheworldwideethylenecapacityrosefrom10%in2007to15%in2011. GCCstateswererapidlyexpandingtheirethylenecapacitiesbetween2007and2011at

    compoundannualgrowthrate(CAGR)of15.7%.AmongotherregionsoftheworldonlyChinawas expanding ethylene capacity at a similar pace.

    GCCisthefourthlargestregionintheworldinethyleneproductionafterNorthAmerica,Asia(excluding China) and Europe.

    GCC Ethylene capacity expansion CAGR of 15.7% is the highest in the world

    151.5million tons in 2011

    Worldwide ethylene capacity reached

    4.8%Worldwide ethylene

    capacity expanded at CAGR

    15.7%GCC ethylene capacity

    expanded at CAGR

    15%of the worldwide ethylene capacity

    GCC accounts for

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Ethylene)

    2007 - 2011

    2007 - 2011

    Worldwide Ethylene capacity by region, share (%)2007

    Total: 125.4 Million Tons 2011

    Total: 151.5 million tons

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    67%

    27%

    23%25%

    10%

    8%5%

    2%

    North America Asia (excluding China)

    Europe GCC

    China South America

    Africa The rest of World

    23%

    22%

    22%

    15%

    12%

    5%1%

    Worldwide Ethylene capacity growth (CAGR 2007-2011)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database

    15.7 %

    3.8 %

    1.5 %0.2 % 0 % 0 %

    -0.5 %GCC China Asia(excluding China)

    SouthAmerica

    Europe

    Worldwide Ethylene CAGR: 4.8%

    Africa The restof World North

    America

    14.8 %

  • 34 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Urea)

    GCCshareintheworldwideureacapacityhasincreasedfrom6%in2007to7%in2011. GCCregionwasexpandingitsureacapacitiesbetween2007and2011atcompoundannual

    growthrate(CAGR)of6%.ThisisthehighestamongotherregionsandonlySouthAmericasproducers were expanding their urea capacities at the similar pace.

    Asia(includingChina)continuestobethelargestureaproducerintheworldaccountingfor59% of the worldwide urea capacity.

    GCC Urea capacity expansion with CAGR of 6% is the highest in the world

    Worldwide Urea capacity by region, share (%)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    2007Total: 157.8 Million Tons

    2011Total: 169.7 Million Tons

    37%

    24%

    15%

    8%

    6% 4%4%2%

    38%

    21%

    14%

    8%

    7%5%

    4%3%

    China Asia (excluding China)

    Europe North America

    GCC South America

    Africa The rest of World

    Worldwide Urea capacity growth (CAGR 2007-2011)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database

    0%

    Europe

    0%

    NorthAmerica

    6%

    GCC

    5%

    SouthAmerica

    3%

    Africa

    2%

    China

    Worldwide Urea CAGR: 2%

    -1%Asia (excluding

    China)

    2%Worldwide urea

    capacity expanded at a CAGR of

    2007-2011

    7%GCC accounts for

    of the worldwide urea capacity

    6%GCC urea capacity expanded at CAGR

    2007-2011

  • 35Gulf Petrochemicals & Chemicals Association

    12%GCC accounts for

    of the worldwide polyethylene capacity

    GCCshareoftheworldwidepolyethylenecapacityrosefrom10%in2007to12%in2011. From2007-2011PolyethylenecapacityintheGCCwasexpandingatcompoundannual

    growthrate(CAGR)of12.4%.AmongotherregionsoftheworldonlyChinawasexpandingits polyethylene capacity at a faster pace. China and the GCC led worldwide polyethylene expansionbetween2007and2011.

    Polyethyleneproducersinotherpartsoftheworldwerealsoexpandingtheircapacities.Theirshare in the worldwide polyethylene capacity remains marginal and reached 5% in 2011.

    Asia(includingChina)continuestobethelargestpolyethyleneproducerintheworldaccountingfor34%oftheworldwidepolyethylenecapacity.

    GCC Polyethylene capacity expansion CAGR of 12.4% is one of the highest in the world

    94.6 million tones

    Worldwide polyethylene capacity reached

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Polyethylene)

    Worldwide Polyethylene capacity by region, share (%)2007

    Total: 76.8 Million Tones2011

    Total: 94.6 Million Tons

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    67%

    26%

    21%25%

    10%

    10%6%

    2%

    Europe Asia (excluding China)North America China

    GCC South AmericaAfrica The rest of World

    22%

    20%

    20%

    14%

    12%

    6%1%5%

    Worldwide Polyethylene capacity growth (CAGR 2007-2011)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database

    Worldwide polyethylene CAGR: 5.4%

    14.7 %

    China

    12.4 %

    GCC

    4.0 %

    Asia (excluding China)

    3.3 %

    Africa

    1.6 %

    South America

    0.9 %

    Europe -0.6 %North America

    5.4%Worldwide

    polyethylene capacity expanded at CAGR

    2007 - 2011

    12.4%GCC

    polyethylene capacity expanded at CAGR

    2007 - 2011

  • 36 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Ammonia)

    GCCshareoftheworldwideethylenecapacityrosefrom4%in2007to5%in2011. WhileGCCstateswereexpandingtheirammoniacapacities,otherregionswerealsoadding

    ammoniacapacities.AlthoughGCCammoniacapacitywasgrowingatCAGR11%,itsworldwide share increased only by 1%. Most significant ammonia capacity additions were taking place in Asia (excluding China).

    Asia(includingChina)continuestobethelargestammoniaproducerintheworldaccountingfor54%ofworldwideammoniacapacity(Chinaaccountingfor30%andrestofAsiaaccountingfor24%).

    GCC Ammonia capacity expansion with CAGR of 11% is one of the highest in the world

    Worldwide Ammonia capacity by region, share (%)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    2007Total: 174.1 million tones

    2011Total: 212.2 Million Tones

    China Asia (excluding China)

    Europe North America

    South America GCC

    Africa The rest of World

    33%

    15%25%

    10%

    6%

    4% 4%3%

    30%

    24%

    21%

    7%

    6%

    5% 4%3%

    Worldwide Ammonia capacity growth (CAGR 2007-2011)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012V

    17 %

    11 %

    8 %

    5 %3 % 3 %

    0 % -1 %Asia(excluding

    China)

    GCC The rest of World

    Africa South America

    ChinaEurope North

    America

    Worldwide Ammonia CAGR: 5%

    212.2Worldwide ammonia

    capacity reached 212.2

    million tons in 2011

    5%Worldwide ammonia

    capacity expanded at CAGR

    between 2007 and 2011

    11%GCC ammonia capacity

    expanded at CAGR

    5%GCC accounts for

    of the worldwide ammonia capacity

    2007 - 2011

  • 37Gulf Petrochemicals & Chemicals Association

    12%GCC accounts for

    of the worldwide Methonal capacity

    GCCshareintheworldwidemethanolcapacityhasdecreasedfrom17%in2007to12% in 2011.

    MethanolcapacityexpansionintheGCCwaslowerthaninotherpartsoftheworldwhich resulted in the GCC regions reduced share of worldwide methanol capacity

    Mostofthemethanolcapacityadditionssince2007havebeeninChina.ConsequentlyChinasshareofworldwidemethanolcapacityrosefrom23%in2007to40%in2011.

    45%oftheworldwidemethanolcapacityisconcentratedinAsia(includingChina)which makes Asia the largest producer of methanol in the world.

    GCC continue to be one of the top methanol producing regions in the world accounting for 12% of worldwide methanol capacity

    85 million tons in 2011

    Worldwide methanol capacity reached

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Methanol)

    Worldwide Methanol capacity by region, share (%)2007

    Total: 49.6 Million Tons2011

    Total: 85 Million Tons

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    23%

    25%

    17%

    19%

    6%4% 3%

    3%

    40%

    16%12%

    12%

    10%

    5%

    3%2%

    China Asia (excluding China)

    Europe North America

    South America GCC

    Africa The rest of World

    Worldwide Methanol capacity growth (CAGR 2007-2011)

    2007-2011

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    32 %

    China

    22 %

    Asia(excluding China)

    15 %

    Africa

    4 %

    GCC

    2 %

    South America -1 %North

    America

    2 %

    Europe

    Worldwide Methanol CAGR: 14%

    14%Worldwide methanol

    capacity expanded at CAGR

    2007-2011

    4%GCC methanol capacity

    expanded at CAGR

    2007-2011

  • 38 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Propylene)

    GCCshareintheworldwidepropylenecapacityincreasedfrom3%in2007to7%in2011. Asia(includingChina)andNorthAmericacontinuetobethelargestpropyleneproducersinthe

    worldaccountingfor67%oftheworldwidepropylenecapacity. GCCstateswererapidlyexpandingtheirpropylenecapacitiesbetween2007and2011at

    compoundannualgrowthrate(CAGR)of27%. Chinaaloneaccountsfor18%oftheworldwidepropylenecapacity.Since2007Chinahas

    beenexpandingitspropylenecapacitiesataCAGRof14.2%whichisthesecondhighestgrowth rate after GCC

    GCC propylene capacity expansion of CAGR 27% is the highest in the world

    Worldwide Propylene capacity by region, share (%)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database

    2007Total: 88.1 Million Tones

    2011Total: 112.9 Million Tons

    24%

    28%24%

    14%

    3%

    5%

    2%

    Asia (excluding China) North AmericaEurope China

    GCC South AmericaAfrica The rest of World

    26%

    23%19%

    18%

    7% 4%

    2%1%

    Worldwide Propylene capacity growth (CAGR 2007-2011)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012V

    27%

    GCC

    14.2%

    China

    7.9%

    Asia(excluding China)

    6.7%

    Africa

    6.0%

    SouthAmerica

    1.6%

    NorthAmerica

    -0.3%Europe

    Worldwide propylene CAGR 6.4%

    112.9Worldwide propylene

    capacity reached

    million tons in 2011

    6.4%

    27%

    Worldwide propylene capacity expanded at CAGR

    GCC propylene capacity expanded at CAGR

    7%GCC accounts for

    of the worldwide propylene capacity

    2007-2011

    2007-2011

  • 39Gulf Petrochemicals & Chemicals Association

    12%GCC accounts for

    of the worldwide polypropylene capacity

    GCCshareintheworldwidepolypropylene(PP)capacityrosefrom7%in2007to12%in2011.

    Themajorityofworldpolypropylene(PP)continuestobeproducedinAsia(includingChina).Their share of the worldwide polypropylene (PP) capacity is 50%. China is the largest single country polypropylene (PP) producer accounting for 23% of the worldwide capacity. PolypropyleneproducersinChinawereexpandingtheirpolypropylenecapacitiesatCAGRof17.1%.

    WhileEuropecontinuestobeoneofthelargestproducersofpolypropylene,therewerenosignificant capacity additions over the past years in Europe which has resulted in the decline ofitsworldwidemarketsharefrom24%in2007to17%in2011.

    GCC polypropylene (PP) capacity expansion of CAGR 24.8% is the highest in the world

    64.3million tons in 2011

    Worldwide polypropylene (PP) capacity reached

    8%Worldwide

    polypropylene capacity expanded at CAGR

    (2007-2011)

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Polypropylene (PP))

    Worldwide Polypropylene (PP) capacity growth (CAGR 2007-2011)

    Worldwide Polypropylene (PP)CAGR: 8%

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    24.8%

    GCC

    19.0%

    Africa

    17.1%

    China

    10.3%

    SouthAmerica

    7.4%

    Asia (excluding

    China)

    -0.3%Europe -3.4%

    North America

    24.8%GCC

    polypropylene capacity expanded at CAGR

    (2007-2011)

    Worldwide Polypropylene (PP) capacity by region, share (%)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    67%

    2007Total: 47.3 Million Tones

    28%

    16%

    24%

    18%

    7%6%

    1%

    2011Total: 64.3 Million Tones

    27%

    23%17%

    12%

    12%6% 2%

    1%

    Asia (excluding China) ChinaEurope North America

    GCC South AmericaAfrica The rest of World

  • 40 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Monoethylene Glycol (MEG))

    GCCshareintheworldwideMEGcapacityrosefrom24%in2007to29%in2011. GCCstateswererapidlyexpandingtheirMEGcapacitiesbetween2007and2011at

    compoundannualgrowthrate(CAGR)of10%.AmongotherregionsoftheworldonlyChinawas expanding MEG capacity at a higher rate.

    Asia(includingChina)isthelargestMEGproducerintheworldaccountingfor46%oftheworldwide MEG capacity. GCC is the second largest producer of MEG representing 29% of the global capacity.

    GCC region is the second largest MEG producer in the world after Asia

    Worldwide Monoethylene Glycol (MEG) capacity by region, share (%)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    2007Total: 20.7 Million Tons

    2011Total: 26.1 Million Tons

    24%

    28%11%

    22%

    11%

    4%

    GCC Asia (excluding China)China North America

    Europe South AmericaThe rest of World Africa

    29%

    27%

    18%

    14%

    8% 3%1%

    Worldwide Monoethylene Glycol (MEG) capacity growth (CAGR 2007-2011)

    Worldwide MEG CAGR: 6%

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    19%

    China

    10%

    GCC

    4%

    Asia(excluding China)

    0%

    SouthAmerica

    -5%

    Europe

    -6%

    NorthAmerica

    0%

    Africa

    26.1Worldwide MEG

    capacity reached

    million tons in 2011

    2007-20116%

    Worldwide MEG capacity expanded at CAGR

    29%GCC accounts for

    of the worldwide MEG capacity

    10%GCC MEG capacity expanded at CAGR

    2007-2011

  • 41Gulf Petrochemicals & Chemicals Association

    22%GCC accounts for

    of the worldwideMTBE capacity

    GCCshareoftheworldwideMTBEcapacityrosefrom20%in2007to22%in2011. WhileMTBEcapacitiesworldwideweredecreasing,Asia(includingChina)andGCCwere

    expanding their MTBE capacities. MTBEcapacityinChinagrewatCAGRof15%thestrongestgrowthworldwide.GCC

    producerswereexpandingtheirMTBEcapacitiesatCAGRof2%between2007and2011. Asia(includingChina)isthelargestMTBEproducerintheworldaccountingfor38%ofthe

    worlds MTBE capacity. China alone represents 26% of the global MTBE capacity.

    GCC region is the second largest MTBE producer in the world after Asia

    18.3million tons in 2011

    Worldwide MTBEcapacity reached

    1%Worldwide

    MTBE capacity decreased by CAGR

    (2007-2011)

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Methyl tert-butyl ether (MTBE))

    Worldwide MTBE capacity by region, share (%) 2007

    Total: 18.7 Million Tones

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    67%

    15%

    20%

    19%

    23%

    10%

    8%5%

    China GCCEurope North America

    Asia (excluding China) South AmericaThe rest of World

    2011Total: 18.3 Million Tones

    26%

    22%18%

    14%

    12%

    5%3%

    2%GCC

    MTBE capacityexpended at CAGR

    (2007-2011)

    Worldwide MTBE capacity growth (CAGR 2007-2011)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    Worldwide MTBE CAGR: -1%

    15%

    China

    4%

    Asia(excluding China)

    2%

    GCCEurope

    -10%

    The rest ofWorld

    -11%

    SouthAmerica

    -13%

    NorthAmerica

    -2%

  • 42 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    5%Worldwide DAP capacity

    expanded at CAGR

    3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (DAP)

    GCCshareintheworldwideethylenecapacityrosefrom1%in2007to5%in2011. GCChasexpandeditsDAPcapacitybetween2007and2011atcompoundannualgrowth

    rate(CAGR)of61%.Itisthehighestregionalcapacityexpansionrateintheworld. Asia(includingChina)isthelargestDAPproducerintheworldaccountingfor42%ofthe

    global DAP Capacity. China alone represents 32% of the worlds DAP capacity. GCCisarelativelyminorproducerofDAPaccountingfor5%oftheworldwideDAPcapacity.

    GCC Diammonium phosphate (DAP)s capacity expansion of CAGR 61% is the higest in the world

    Worldwide Monoethylene Glycol (MEG) capacity by region, share (%)

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    2007Total: 59.9 Million Tones

    2011Total: 73 Million Tones

    25%

    27%14%

    12%

    11%

    7%

    1%3%

    China North America

    Europe Asia (excluding China)

    Africa The rest of World

    GCC South America

    32%

    22%11%

    11%

    10%

    6%

    5%3%

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

    Worldwide DAP CAGR: 5%

    Worldwide DAP capacity growth (CAGR 2007-2011)

    61%

    GCC

    11%

    China

    6 %

    SouthAmerica

    5%

    Africa

    1%

    Asia(excluding

    China)

    0%

    North America

    0%

    The rest ofWorld

    -1%Europe

    73Worldwide DAP

    capacity reached

    million tons in 2011

    2007-2011

    61%GCC DAP capacity expanded at CAGR

    5%GCC accounts for

    of the worldwide DAP capacity

    2007-2011

  • 43Gulf Petrochemicals & Chemicals Association

    2011 global ranking of GCC top 10 products

    Capacity expansions for the major GCC products were the highest among other regions of the world

    3.1.9 Global Ranking of GCC top 10 Products

    Product Name

    GCC Capacity (million tons)

    Global share (%)

    CAGR (2007-2011)

    Global Ranking (CAGR)

    Global Ranking

    (Capacity)*

    Ethylene 22.3 15% 15.7% 1 4

    Urea 12.7 7% 6% 1 4

    Polyethylene 11.8 12% 12.4% 2 4

    Ammonia 11.4 5% 11% 2 5

    Methanol 9.9 12% 4% 4 3

    Propylene 7.7 7% 27% 1 4

    Polypropylene (PP) 7.6 12% 25% 1 4

    Monoethylene Glycol (MEG) 7.6 29% 10% 2 2

    Methyl tert-butyl ether (MTBE) 4.0 22% 2% 3 2

    Diammonium phosphate (DAP) 3.4 5% 61% 1 7

    Note: Global ranking considers regional growth rates (CAGR) between 2007 and 2011 and regional capacities for individual products

    Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

  • 44 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    PetrochemicalscapacitycontinuestoexpandintheGCC.In2011,totalGCCpetrochemicalscapacitygrewby10%,reaching121milliontonsperannum.Between2007and2011regionalpetrochemicalscapacityexpandedatCAGRof13.4%.

    SaudiArabiaisthelargestpetrochemicalproducerintheregion,accountingfor67%ofthetotalGCCpetrochemicalscapacity.WithnewcapacityadditionsinotherGCCcountries,SaudiArabias share in the regional petrochemicals capacity in 2011 has declined by 3% compared withhighest70%in2007.

    Qatarcontinuestobethesecondlargestpetrochemicalsproducerintheregionaccountingfor14%ofthetotalGCCcapacityin2011.In2011Qataradded5.3milliontonsofnewpetrochemicalscapacity.ThisbringsQatarstotalpetrochemicalscapacityto16.7milliontonsperannum.In2011comparedto2010Oman,KuwaitandtheUAEhaveeachseenadecreaseof1% in their countrys share of the total regional petrochemicals capacity.

    o Omanssharein2011hasdeclinedto7%from8%in2010; o Kuwaitssharein2011hasdeclinedto6%from7%in2010; o UAEssharein2011hasdeclinedto5%from6%in2010 Bahraincontinuestoaccountfor1%oftheGCCpetrochemicalscapacity

    GCC petrochemicals sector continues to expand

    3.2.1. GCC Production Capacity

    GCC Petrochemicals Capacity by Country

    Source: GPCA Petrochemicals Database, October 2012

    Mill

    ions

    Ton

    s

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    51 5466 75

    81

    10 1010

    1117

    5 57

    99

    4 4

    58

    8

    2

    73 76

    92

    110121

    2

    2

    66

    0

    20

    40

    60

    80

    100

    120

    140

    2007 2008 2009 2010 2011

    CAGR: 13.4%

    GCC Petrochemicals capacity

    grew at CAGR of 13%

    between 2007-201113.4% year-on-year growth of GCC Petrochemicals Capacity in

    2011

    10%year-on-year growth of Qatar petrochemicals capacity in

    2011

    46%

  • 45Gulf Petrochemicals & Chemicals Association

    of GCC petrochemicals capacity in 2011

    Saudi Arabiaaccounts for

    67%

    GCC Petrochemicals Capacity, Country Share

    2007Total: 73 Million Tons

    2011Total: 121 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    Saudi Arabia QatarOman KuwaitUAE Bahrain

    70%

    13%

    6%

    6%3%2%

    67%

    14%

    7%

    6%5%1%

    GCC Petrochemicals Capacity Growth by Country (CAGR, 2007-2011)

    GCC CAGR: 13.4%

    Source: GPCA Petrochemicals Database, October 2012

    26%

    17% 16% 15%12%

    2%

    UAE Oman Kuwait Qatar Saudi Arabia Bahrain

  • 46 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    In2011,GCCcountriesproduced45.4milliontonsofbasicpetrochemicals.Thisisa2%growthincomparisonwiththepreviousyear.Lookingatthelongerperiodbetween2007and2011,regionalbasicpetrochemicalscapacitygrewatCAGRof15%.

    SaudiArabiacontinuestobethelargestbasicpetrochemicalsregionalproducer,accountingfor69% of the GCC total. In 2011, the countrys capacity to produce basic petrochemicals reached 31 milliontons.Overtheperiod2007to2011,SaudiArabiasbasicpetrochemicalscapacityhasbeengrowingatCAGR11%.

    QataristhedistantsecondlargestproducerofbasicpetrochemicalsintheGCCaccountingfor9%oftheregionalcapacityor4.3milliontons.SignificantcapacityadditionsinQatartookplacein2010and2011whencapacitygrewby59%and23%respectivelyonyear-on-yearbasis.

    In 2011 GCC basic petrochemicals production capacity reached 45.4 million tons

    3.2.2. Basic Petrochemicals: Breakdown by Country

    GCC Basic Petrochemicals Capacity by Country, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    20.6

    26.4 27.2

    32.6

    44.4 45.4

    2.21.41

    2007

    21.3

    2.21.41

    2008

    25.7

    2.22.41

    2009

    30.9

    3.53.433

    2010

    31.2

    4.33.433

    2011

    Mill

    ion

    Tons

    CAGR: 15%

    GCC Basic Petrochemicals Capacity by Country, Share (%)2007

    Total: 26.4 Million Tons2011

    Total: 45.4 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    78%

    8%

    5%

    5% 2%2%

    69%

    9%

    8%

    7%6% 1%

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    Saudi Arabia accounts for the majority of the basic

    petrochemicals capacity with

    69%of the regions total

    23%year-on-year increase

    of basic petrochemicals capacity in 2011

  • 47Gulf Petrochemicals & Chemicals Association

    Basic petrochemicals capacity grew at CAGR

    between 2007-2011

    15%

    UAE basic petrochemicals capacity grew at CAGR

    the highest in the GCC region

    48%

    KuwaitandOmaneachrepresent7%oftheregionalbasicpetrochemicalsproductioncapacity.In2011bothcountrieshadthecapabilitytoproduce3.4milliontonsofbasicpetrochemicals.Comparedwiththeirrespectivecapacitiesin2007,KuwaitandOmanhadoneofthehighestcompounded annual growth rates in the region. Basic petrochemicals capacity in Kuwait grew at CAGR27%and25%inOman.

    BasicpetrochemicalscapacityintheUAEreached2.9milliontonsperannumin2011accountingfor6%oftheregionalcapacity.From2007-2011themostsignificantcapacityadditionintheUAEtookplacein2010.

    In2011Bahrainsshareoftheregionalbasicpetrochemicalsproductioncapacityremainedat1%.

    GCC Basic Petrochemicals Capacity Growth , CAGR (2007-2011)

    Source: GPCA Petrochemicals Database, October 2012

    GCC CAGR: 15%

    48%

    UAE Kuwait Oman

    18%

    Qatar

    11%

    Saudi Arabia3%

    Bahrain

    27% 25%

  • 48 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    GCC fertilizers capacity grew at CAGR

    2007-201111%

    In2011GCCfertilizerscapacityreached27.4milliontonswhichisa36%increaseover2010level.Inthepastyearsbetween2007and2011regionalfertilizersindustrygrewatCAGRof11%.

    In2011SaudiArabiaandQataraccountfor40%and28%respectivelyoftheGCCfertilizerscapacity making them the largest in the region.

    InbothSaudiArabiaandQatartheonlycapacityadditionbetween2007and2011tookplacein2011when4milliontonsoffertilizerscapacitieswerebroughtonlineinSaudiArabiaand3.3million tons in Qatar.

    In2011Omansfertilizercapacityisestimatedtobe4.8milliontons.From2007-2011fertilizercapacityinOmanexpandedataCAGRof14%

    WithnofertilizerscapacityadditionsinKuwaitandtheUAE,theirshareintheregionalfertilizerscapacityhasdeclined.In2011Kuwaitsshareintheregionalfertilizerscapacitydeclinedto6%andtheUAEssharedeclinedto5%.

    FertilizerscapacityinBahrainaccountsfor4%ofregionalcapacity.

    In 2011 Saudi Arabia and Qatar have significantly increased their fertilizers capacities

    3.2.3 Fertilizers: Breakdown by Country

    million ton of GCC fertilizers capacity in 2011

    27.4

    GCC Fertilizers Capacity by Country, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    7.0 7.0 7.0 7.011.0

    4.4 4.44.4

    4.4

    7.72.8

    18.2 18.219.5

    20.1

    27.4

    2.8 4.2 4.8

    4.8

    1.7 1.71.7 1.7

    1.7

    1 11 1

    1

    1 11 1

    1

    0

    5

    10

    15

    20

    25

    30

    2007 2008 2009 2010 2011

    Mill

    ions

    Ton

    s

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    CAGR: 11%

    36%year-on-year increase of

    the GCC fertilizers capacity in 2011

  • 49Gulf Petrochemicals & Chemicals Association

    The top three producersof fertilizers in the

    GCC are

    SaudiArabia, Qatar

    and

    OmanGCC Fertilizers Capacity Growth, CAGR (2007-2011)

    Source: GPCA Petrochemicals Database, October 2012

    15%

    Qatar

    14%

    Oman

    12%

    Saudi Arabia

    1%

    Bahrain

    0%

    UAE

    0%

    Kuwait

    GCC CAGR: 11%

    GCC Fertilizers Capacity by Country, Share (%)

    Source: GPCA Petrochemicals Database, October 2012

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    2007Total: 18.2 Million Tons

    2011Total: 27.4 Million Tons

    39%

    24%

    16%

    9%

    7%5%

    40%

    28%

    17%

    6%5% 4%

  • 50 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    GCCintermediateproductscapacityislocatedinSaudiArabia,KuwaitandQatar. In2011GCCintermediateproductscapacityreached9.9milliontonsperannum.From2007-

    2011GCCintermediatescapacitywasexpandedatacompoundannualgrowthrate(CAGR)of 21%.

    ThemajorityofintermediateproductsareproducedinSaudiArabiawhichaccountsfor89%of the regional capacity. Saudi Arabia is the largest producer of intermediate products and expandeditscapacityataCAGR(2007-2011)of22%.Since2007SaudiArabiascapabilitytoproduceintermediateproductshasmorethandoubledfrom4milliontonsto8.8milliontonsin 2011.

    IntermediateproductsproductioninKuwaitcommencedin2009.In2011Kuwaitscapacityofintermediate products accounts for 5% of the regional capacity.

    Majority of intermediate products are produced in Saudi Arabia which accounts for 89% of the regional capacity

    3.2.4 Intermediates: Breakdown by Country

    GCC intermediates capacity by country, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    4.06.3 7.3

    7.9 8.80.5

    0.60.6

    0.60.6

    0.50.5

    0.5

    0

    2

    4

    6

    8

    10

    12

    2007 2008 2009 2010 2011

    Saudi Arabia Qatar Kuwait

    CAGR: 21% 9.9

    9.08.4

    6.9

    4.5

    GCC intermediate products capacity grew at CAGR

    21%

    year-on-year growth of intermediate products capacity

    in Saudi Arabia in 2011

    12%

    GCC Intermediates Capacity by Country, Share (%)

    Source: GPCA Petrochemicals Database, October 2012

    2007Total: 4.6 Million Tons

    12%

    88%

    2011Total: 9.9 Million Tons

    89%

    6%5%

    Saudi Arabia Qatar Kuwait

    2007-2011

  • 51Gulf Petrochemicals & Chemicals Association

    16.5% between 2007-2011

    GCC polymers capacitygrew at CAGR

    75%of the GCC polymers capacity is located in

    Saudi Arabia

    38%UAE

    polymers capacity expands at CAGR of

    between 2007-2011

    19.2%Qatar

    polymers capacity expands at CAGR of

    between 2007-2011

    GCC Polymers Capacity by Country, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    8.6

    0.9

    2007

    8.8

    0.9

    2008

    13.7

    0.9

    2009

    15.0

    2.01.31.0

    2010

    15.4

    2.01.71.0

    2011

    Mill

    ion

    Tons

    Saudi Arabia UAE Qatar Kuwait Oman

    11 11.2

    16.2

    19.6 20.4CAGR: 16.5%

    0

    5

    10

    15

    20

    GCCpolymerscapacityispresentinallGCCstatesexceptforBahrain. In2011GCCpolymerscapacityreached20.4milliontons.Between2007and2011GCC

    polymerscapacitywasexpandingatcompoundannualgrowthrate(CAGR)of16.5%. 75%oftheGCCpolymerscapacityislocatedinSaudiArabia.Asof2011polymerscapacityin

    SaudiArabiaisestimatedat15.4milliontons.Since2007SaudiArabiaspolymerscapacityhasalmostdoubledfrom8.6to15.4milliontonsin2011.TheUAEisthesecondlargestproducer of polymers in the region and represents 10% of the regional polymers capacity. The mostsignificantpolymerscapacityexpansionintheUAEtookplacein2010when1.4milliontons of polymer capacity was brought on stream.

    With1.7milliontonesofpolymerscapacityQataraccountsfor8%ofGCCtotal.Polymerscapacity additions in Qatar over the past few years have doubled its polymer capacity.

    Kuwaitcontinuestoholdits5%shareoftheregionalpolymerscapacity.In2011polymerscapacityinKuwaitreached1.7milliontons.

    GCCpolymerscapacityexpansionindexin2011roseto184points.Analyzingeachcountrysindividualcapacityexpansionindex,itisobservedthatUAEandQatarhaveoutperformedtheGCCregionalcapacityexpansionwiththeindexfortheUAEandQatarrisingto363and202respectivelyAsthemajorityofpolymerscapacityislocatedinSaudiArabia,thepolymerscapacity expansion index of Saudi Arabia and the GCC overall polymers expansion index are evolving along the same trend lines.

    Saudi Arabia continues to account for the majority of regional polymers capacity and other GCC states are expanding

    3.2.5 Polymers: Breakdown by Country

    GCC Polymers Capacity by Country, Share (%)

    2007Total: 11.1 Million Tons

    2011Total: 20.4 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    78%

    5%

    8%

    6% 3%

    Saudi Arabia UAE Qatar Kuwait Oman

    75%

    10%

    8%5%2%

  • 52 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    3.3.1 Capacity Utilization by Country

    Petrochemicalscapacityutilizationattheregionallevelin2011hasmarginallydroppedfrom92% in 2010 to 91% in 2011.

    Atthecountrylevel,petrochemicalscapacityutilizationhasdroppedinallGCCcountriesexceptfortheUAEandBahrain.DuetotherampupperiodforthenewfacilitiesintheUAE,capacityutilizationwaslowin2010andsimprovedto84%in2011.

    CapacityutilizationinBahrainhasimprovedfrom109%in2010to113%in2011. WhileSaudiArabiaandQatararethelargestproducersintheGCC,theircapacityutilization

    hasslightlydeclinedin2011whencomparedto2010.ThelargestdeclineincapacityutilizationtookplaceinQatarwhereitdeclinedby13%.Thisisduetothestart-upofnewfacilitiesandtime required to achieve target production.

    CapacityutilizationinKuwaithasdeclinedby5%from96%in2010to91%in2011. Omanhasoneofthehighestcapacityutilizationratesintheregion.In2011overallcapacity

    utilizationreached96%,thisisadeclineof2%from2010level.

    2011 capacity utilization has marginally declined across GCC except for the UAE and Bahrain

    Source: GPCA Petrochemicals Database, October 2012

    2011 Y-o-Y change in GCC capacity utilization by country, %

    26%

    UAE

    3%

    Bahrain -1%

    Saudi Arabia

    -3%

    Oman

    -5%

    Kuwait

    -13%

    Qatar

    Y-o-Y change of GCC capacity utilization: -1%

    91%overall capacity utilization

    in the GCC in 2011

    1%Decline of

    in capacity utilization in the GCC in 2011

    GCC Petrochemicals capacity utilization by country, %

    Source: GPCA Petrochemicals Database, October 2012

    2011 Capacity Utilizaton 2010 Capacity Utilization

    59%

    96%

    92%

    92%

    106%

    98%

    109%

    UAE

    Kuwait

    Saudi Arabia

    GCC

    Qatar

    Oman

    Bahrain

    84%

    91%

    91%

    91%

    92%

    96%

    113%

    UAE

    Kuwait

    Saudi Arabia

    GCC

    Qatar

    Oman

    Bahrain

  • 53Gulf Petrochemicals & Chemicals Association

    GCCCapacityutilizationacrossallproductgroupshasimprovedexceptforfertilizerswhichhavedroppedfrom104%in2010to81%in2011.Thisisduetorampupperiodrequiredtostartnewfertilizersfacilities.LowerfertilizerscapacityutilizationhasdraggeddowntheoverallGCCpetrochemicalscapacityutilizationfrom92%in2010to91%in2011.Productionofintermediate and specialties products is operating at the highest operating rate for the second consecutive year.

    Thelargestimprovementinoperatingrateswasobservedwithinbasicpetrochemicalsgroup.Theircapacityutilizationroseto94%from89%in2010.

    Thoughpolymersproductionhasoneofthelowestutilizationrates,itscapacityutilizationhasimprovedto89%in2011.

    In2011chemicalscapacityutilizationstoodat96%,whichisanincreaseof2%over2010.

    In 2011 capacity utilization for most products improved

    5%in 2011

    Basic petrochemicals producers have improved

    their capacity utilization by

    94%operating rates of basic

    petrochemicals units in the GCC in 2011

    96%utilization of capacities for

    production of chemicals

    3.3.2 Capacity Utilization by product group

    Source: GPCA Petrochemicals Database, October 2012

    2011 Y-o-Y change in capacity utilization by product groups, %

    Y-o-Y change of overall capacity utilization:

    -1%

    6 % 4 % 2 % 2 % 0 %

    -23 %

    Basic Polymer Intermediate Chemical Specialities Fertilizers

    GCC Petrochemicals capacity utilization by product groups, %

    Source: GPCA Petrochemicals Database, October 2012

    104%

    85%

    92%

    89%

    94%

    100%

    98%

    Fertilizers

    Polymer

    All Products

    Basic

    Chemical

    Specialities

    Intermediate

    81%

    89%

    91%

    94%

    96%

    100%

    100%

    Fertilizers

    Polymer

    All Products

    Basic

    Chemical

    Specialities

    Intermediate

    2011 Capacity Utilizaton 2010 Capacity Utilization

    23%decrease in capacity utilization of fertilizers

    in 2011

  • 54 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    C3 (Propylene) value-chain production recorded

    lowest utilization rate of

    81%

    3.3.3 Capacity Utilization by Value-chain

    In2011GCCcapacityutilizationofEthylene(C2)productswas93%,animprovementof1%over 92% in 2010.

    In201181%ofPropylene(C3)productscapacitywasusedbyGCCproducers,thisisa6%improvementover2010.Propylene(C3)capacityutilizationcontinuestobethelowestamongwhencomparedtoothervalue-chains

    ThemostsignificantdeclineincapacityutilizationwasobservedinproductionofMethanol(C1)value-chainproducts.In2010plantsproducingproductsbasedonMethanewereoperatingat102%capacity,in2011theircapacityutilizationhasdeclinedto94%.However,Methanolvalue-chain(C1)productscapacityutilizationremainshighestwhencomparedtoothervalue-chains.

    In2011aromaticscapacityutilizationwas92%whichrepresentsadeclineof2%from94%in 2010.

    Production of all value chain products was operating at utilization rate above 90% except for the propylene value-chain products

    GCC Petrochemicals capacity utilisation by product value chain, %

    Source: GPCA Petrochemicals Database, October 2012

    2010 Capacity Utilization 2011 Capacity Utilizaton

    C3 propylene

    All Products

    Aromatics

    C4 Butadiene

    C2 Ethylene

    C1 Methanol

    C3 propylene

    All Products

    Aromatics

    C4 Butadiene

    C2 Ethylene

    C1 Methanol

    74%

    92%

    94%

    94%

    92%

    102%

    81%

    91%

    92%

    92%

    93%

    94%

    Source: GPCA Petrochemicals Database, October 2012

    2011 Y-o-Y Change in capacity utilization by product value chains, %

    Y-o-Y change of overall capacity utilization: -1 %

    6 %

    C3 propylene

    1 %

    C2 Ethylene

    -2 %

    C4 Butadiene

    -2 %

    Aromatics

    -8 %

    C1 Methanol

    94%of capacity utilization of

    C1 (Methan