Some petchem firms wary of possible rise in gas prices next year
Complex Made Simple

Some petchem firms wary of possible rise in gas prices next year

Some petchem firms wary of possible rise in gas prices next year

Suliman al-Mandeel, the managing director of Saudi Industrial Investment Group (SIIG), has said some petrochemical producers in the kingdom fear a possible rise in the price they pay for gas will impact profits starting early next year, Reuters has reported. Saudi petrochemical companies, whose development the government encouraged as part of its long-term strategy to diversify away from oil revenue, enjoy a big competitive advantage over some foreign rivals due to low gas prices. "We are due to have a new pricing policy from the government... we are expecting this to increase so it's going to affect the margins somewhat but hopefully it will be reasonable enough to still make the industry competitive versus the rest of the world," al-Mandeel said.

    Author
    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

    © 2021, ADigitalcom. All rights reserved