Gulf Petrochemicals and Chemicals Association to host next annual Forum in December 2007

The First Annual Forum of GPCA ended in Dubai recently with more than 450 delegates including a host of international experts, sharing key industry insights, experiences, and future plans that could eventually see innovative strategies being adopted to boost the region's petrochemicals and chemicals sector.

Held under the patronage of His Highness, Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the event was opened by Mr. Mohamed Al-Mady, Chairman of GPCA and Vice Chairman and CEO of SABIC.

Formed in March 2006, the non-profit regional association has eight founding members including Saudi Basic Industries Corporation (SABIC), EQUATE Petrochemical Co. (EQUATE), Gulf Petrochemical Industries Co. (GPIC), Petrochemical Industries Co. (PIC), Qatar Petrochemical Co. Ltd. (QAPCO), Qatar Vinyl Co. Ltd. (QVC), National Industrialization Company (TASNEE), and Abu Dhabi Polymers Co. Ltd (Borouge).

The two-day event dealt with a range of challenges and opportunities affecting the region's petrochemical and chemical sectors.

Speaking at the occasion, Mr. Mohamed Al-Mady, Chairman of GPCA and Vice Chairman and CEO of SABIC, outlined some of the factors that have led to the unprecedented expansion of capacity in the Gulf: "This region owes this massive development to two converging factors. First was the decision of GCC countries to diversify their domestic economies by utilizing their hydrocarbon resources and adding value to them as petrochemicals.

'The second factor was the concurrent economic growth in the emerging economies of Asia, which created the rapid growth in the demand for petrochemical products. The combination of these two factors has gradually moved the center of the global petrochemical industry eastward."

Statistics revealed at the conference shed more light on this trend, and provided an upbeat assessment for the GCC region in the future with petrochemical growth centered around Saudi Arabia and Qatar. Saudi Arabia, which represents about 80% of the GCC petrochemicals capacity, is rapidly emerging as a global 'hub' - and will be one of the top four global producers in the next 5 years. Similarly, it is estimated that chemical exports out of the Gulf will more than double by 2009 to 37 million tons.

Commenting on the potential of the GCC energy sector, Mr. Michael J. Dolan, President, ExxonMobil Chemical Company, and one of the keynote speakers at the conference said: "Economic growth progress around the world is driving growth in the markets for energy, consumer products and the petrochemicals from which they are made. The demand for key commodity petrochemicals is growing faster than world GDP. With its major oil and gas reserves, the GCC will continue to be the leading energy supplier to the rest of the world."

Other highlights presented at the conference included the significance of emerging new markets in China, India and Brazil; the implications of declining levels of ethane feedstocks in the GCC; the need to develop new downstream industries; avenues for cost reduction through process improvements and the likelihood of excess capacity for global petrochemicals in the coming 3-4 years.

Exploring the human aspect of these sectors in the Gulf, Paul Eccleston, CEO, The Contax Group, UAE, said: "GCC manpower demand may become a key issue in the future. There is a diminishing pool of skilled labour in GCC and experts are predicting a crunch between 2008-2009. A forum like GPCA is imperative in tackling these concerns in a collective and consensual manner."

Further exploring human resources and related safety and health concerns, Teresa Budworth, CEO, The National Examination Board in Occupational Safety and Health, UK, said: "The human resource management of the energy sector in the Gulf will need to catch up with the rapid financial and technological expansion taking place in the region. For instance, we need to analyze job design to minimize errors due to inadequate skills, rules and knowledge."

The Forum ended with a resounding validation of the role of GPCA as the industry spokesperson for the petrochemicals and chemicals industry in the GCC and on the international stage, with delegates looking forward to the next year for further consolidation of the association's vision.