The rapidly increasing number of petrochemical producers in the GCC states is largely consistent with the objective of reducing the heavy reliance of national income on volatile oil revenues.
This objective has been partially realized as, petrochemicals account today for 40 percent of the total GCC non-oil exports.
However, most of the on-stream and planned petrochemical plants are gas-based, to the effect that the plants produce essentially the same product slates.
Given, in addition, that these plants have world-scale outputs, which are sold in the export markets, it inevitably ensures a strong competition among the GCC producers in the regional and international markets alike.
There is thus a pressing need to prevent a destructive competition, which would be damaging for all players.
The analytical focus of the present study is therefore on a coordination that must be established between the existing and the new GCC petrochemical producers.
Within this perspective, the study will address key question: Is coordination necessary? It will also outline the status of coordination among GCC petrochemical producers and what could be done to make all GCC players winner in an increasingly tight and competitive petrochemical market.
By Dr. Abdul Wahab AL-Sa’doun - Director, Industrial Information & Coordination Department Gulf Organization for Industrial Consulting (GOIC).
Source:OAPEC.ORG
© 2001 Mena Report (www.menareport.com)
