The Middle East is set to remain a key supplier of petrochemicals post-Covid-19, despite the current negative outlook caused by the pandemic, according to GlobalData.
The consulting firm said earlier this week the region, which accounts for around one-third of the global polyolefin trade, is facing regional supply chain disruption and lack of workforce availability.
The pandemic has also lowered petrochemical demand from major end-user sectors such as automotive and construction, both domestically and abroad. As a result, production and exports of petrochemicals have had a blow in the region this year, Kallanish Energy reports.
Low oil prices, pandemic-related disruptions, and spending cuts are likely to delay the majority of the planned petrochemical projects, warned O&G analyst John Somavarapu.
“Companies have undertaken contingency plans to minimize risks related to the outbreak on their operations and ensure business continuity and operations,” he said. “However, producers remain confident that the demand for petrochemicals will rebound in the medium-longer term as global economies are expected to recover.”
Iran is the leading engine for growth in the region, with around 240 planned projects, which together amount to over 90 million tonnes per annum capacity.
This post appeared first on Kallanish Energy News.