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Gulf growing as world hub for plastics

DUBAI -- The Gulf region is growing as the world's hub for plastics development with the right ingredients of location between current and future large plastics demand centres, the hydrocarbon resource base and proximity to markets, a senior industry official said on Tuesday.

Addressing the second GPCA, or Gulf Petrochemicals and Chemicals Association Plastics Summit in Dubai, Ziad S. Al Labban, President and CEO of Saudi-based Petro Rabigh , said that the success of the region's rapidly expanding downstream sector depends on collaborative efforts to bridge the gap between the abundance of hydrocarbon reserves and the relatively low petrochemical production capacity of the region. "The cornerstones of the future are being put in place each day to make this region a hub for plastics development," Ziad said. Nearly 400 key decision makers and thought leaders from the regional and international petrochemicals and plastic converting industry are in Dubai for the two-day summit, which has seen a record increase of 30 per cent
in attendance.

The focus on day one of the summit was supporting the growth and sustainable development of the petrochemicals and plastic converting industry in the Gulf through technology and innovation. Ziad said that the countries in the Gulf and neighboring region have over 50 per cent of the world's oil reserves and nearly 40 per cent of the world's gas reserves. However, according to the Chemical Market Association, Inc. (CMAI), the global petrochemical production from this region is as low 
as 15 per cent. "From a global petrochemical production to hydrocarbon resources ratio, here is where the growth opportunities for the plastics industry are," 
he said. Ziad discussed in detail the GCC area's actions to reap benefits from its natural resource base which he categorised into four major areas: optimising the use of technology, enhancing R&D initiatives and programmes, creating business opportunities, and developing human resources.

He cited a number of examples of partnerships and technology licencing arrangements that are being used to enhance production capabilities in the region, including Saudi Aramco and Dow Chemical Company, Borouge, Qatofin - a joint venture between Qatar and Total - and the joint venture between Qatar Petroleum and ExxonMobil Chemical Qatar Limited in Ras Laffan 
Industrial City.

Ziad said that over the past few years, several initiatives have been taken by both regional governments and the private sector to enhance R&D developments related to the 
petrochemical industry.

For example, by 2011, the Saudi National Science and Technology Plan in King Abdul Aziz City of Science and Technology (KACST) will be investing around SR 2 billion in around 1,000 research proposals and projects.

This investment is more than the investment that was made over the last three decades, he said.

Ziad said that the governments are attracting economy enhancing business opportunities, such as the establishment of industrial parks to allow for the conversion of petrochemical products to secondary and tertiary downstream products, with an array of converters, goods suppliers and service providers, which provide extensive investment prospects for local and foreign investors with a focus on job creation.

An example is the Abu Dhabi Polymer Park that spans 4.1 million square metres with up to 1 million tonnes/year conversion capacity of a wide range of resins, he said.

He said that the development of human resources with focus on the plastics industry is being done in parallel by the governments, the petrochemical companies and educational institutes.

© Khaleej Times 2011