Third Annual GPCA Forum opens in Dubai

The two-day event was inaugurated by GPCA Chairman, Mr. Mohamed Al-Mady, who is also Vice Chairman and Chief Executive Officer of Saudi Basic Industries Corporation (SABIC) in the presence of His Excellency, Abdulla Bin Hamad Al-Attiyah, Deputy Premier, Minister of Energy and Industry, Qatar; Chairman and Managing Director, Qatar Petroleum, and His Highness, Prince Saud Bin Abdullah Bin Thunayan Al Saud, Chairman of Royal Commission of Jubail and Yanbu, and Chairman of SABIC. A petrochemicals and chemicals exhibition was also opened alongside the Forum.

Mr Al-Mady noted how the GPCA Forum has doubled in size in just two years, to over 900 participants in 2008. "I believe much of the success of this Forum is credited to the line-up of outstanding speakers that have been assembled each year," he said. Mr. Al-Mady thanked delegates for their support, adding: "More than anytime that I can recall, our industry is being challenged on many fronts".

HE Abdulla Bin Hamad Al-Attiyah also delivered the keynote speech titled " Meeting Energy and Feedstock Needs for the Region" in which he expressed his confidence in the capabilities of industry captains to help overcome the challenges facing the petrochemical industry.

He said that the GCC petrochemical industry was on the verge of its largest ever expansion with the region's advantage of available feedstock coupled with the inherent economics of scale associated with large investments, creating the perfect opportunity for the region to take the lion's share of new global petrochemical capacity growth.

He said that the total global ethylene capacity is projected to be 160 million metric tons by 2012 with the GCC's share in the global ethylene market expected to grow to 15 per cent in 2012 from 7 per cent in 2002.

"This conference is taking place at a time when the world is witnessing dramatic changes in the oil market. The oil price reached to its highest ever in July -August 2008 and now it is selling at below $50 per barrel. Today, most of the industry analysts suggest, the petrochemical and chemical industry is approaching a period of over capacity that is accompanied by weaker markets. At the same time, we are witnessing the slowdown in global economic growth that is driven by a slowdown in the GDP growth in developed world and particularly in the U.S. The financial market crisis in US and Europe is making the situation further worse".

He said that the most important challenge facing the region was meeting energy and feedstock needs with growing demand of petrochemicals usage in daily life placing tremendous pressure on feedstock supply in the region.

"It is understood that additional associated gas from our oil resources in the region is expected to be limited, as crude oil production is expected to only grow at incremental rates, yet the availability of methane from non-associated gas is expected to grow. We have to use our natural gas resources very strategically for energy and petrochemical projects".

One of the speakers on the opening day, Hassan Ahmed, Managing Director, HSBC Securities (USA) Inc. made a thought-provoking presentation titled "The Financial Crisis: Where Does the Global Chemical Sector Go from Here?".

The Forum provides industry experts an opportunity to share key industry insights, experiences, and discuss the global economic outlook at a critical point in the chemical industry cycle. This year's event will make serious efforts towards understanding and tackling the scope of the petrochemical and chemical industry within the context of the current financial crisis.

Today, we need to exploit the utilization of gas reserves by adopting advance technology. We can also pursue the value added projects selectively to diversify the industries within the region by extending value chain, enhance local industries demand and increase skilled employment in the region.

Speaking at a press conference, Mr. Al Mady said: "As with every other sector, we too are setting the stage to address and discuss the global financial crisis, and the impact it has on our industry. We will have much to discuss at this forum, as industry leaders focus on ways of tackling the difficult times ahead. Over the next two days, international experts will delve into some of the most pressing issues, exchange ideas and create the ideal setting for networking opportunities between industry decision-makers and corporate leaders.

He added: "The GPCA is a young organization, and our members are representative of some of the most powerful players in the petrochemical and chemical sectors. It is our endeavour at the Third Annual GPCA Forum to jointly analyze the future of our industry within the current situation and prepare ourselves for a complex road ahead".

Mr. Abdullah S. Bin Zaid Al-Hagbani, Secretary General of GPCA, said: "Today is a proud occasion for us, as we open our Third Annual GPCA Forum. Since our humble beginnings in 2006, it has indeed been a remarkable journey. In our third forum we will continue to build on our previous years' expertise, review our achievements and take yet another step forward to consolidate our firm foundation in the future. Leading the way will be key experts who will contribute to the well-crafted sessions that have been designed to address the issues affecting today's global petrochemicals industry".

Formed in March 2006, the GPCA 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 Third Annual Forum, which is co-organised by Chemical Week, has attracted delegates from around the world at a critical time for the chemical industry in its business cycle. "In today's uncertain times, the networking opportunities provided by the GPCA Forum are more valuable than ever," says Lyn Tattum Group V/P and Publisher of Chemical Week.

Sessions on Day one included "Meeting Energy and Feedstock Needs for the Region", led by HE Abdulla Bin Hamad Al-Attiyah, Deputy Premier, Minister of Energy and Industry, Qatar; Chairman and Managing Director, Qatar Petroleum; "Managing Growth: Where Are the New Global Feedstock Sources?" led by Jeffrey Lipton, CEO, Nova Chemical; and "The Energy Challenge: Implications for the Middle East and the Global Chemical Industry", led by Ben van Beurden, Executive Vice President, Shell Chemicals. Two breakout sessions are also being offered on Human Resources and Supply Chain.

The sessions on Day two include - "Managing Growth and Competitiveness in a Cyclical Industry", led by Abdulrahman Jawahery, Board Member, GPCA and General Manager, Gulf Petrochemical Industries Co. (GPIC); "The New Trend in China's Petrochemicals Market", led by Li Xihong, President/Economics and Development Research Institute, Sinopec; "The Role of Green Technologies in a Global Chemical Environment", led by Jose Carlos Grubisich, CEO, ETH Bioenergia S.A.; "The Future of Chemicals in the Middle East", led by Florian Budde, Director, McKinsey & Company, Inc.; and "The Emergence of Iran's Petrochemical Industry and its Role in Driving Regional Growth", led by Mohammad Ali Zardbani, Board Member (IPCC).