Kuwait''s share of total GCC petrochemicals'' sector stands at 5 pct

5/22/2012 1:29:03 AM

(MENAFN- Kuwait News Agency (KUNA)) President and CEO of EQUATE Petrochemical Company Mohammad Hussein said on Monday that Kuwait's share of the total petrochemical production of the Gulf Cooperation Council (GCC) does not exceed five percent currently. In an exclusive interview with KUNA, Hussein said that if growth of this industry remained stalled, Kuwait's impact in the petrochemical sector would be "very limited" compared to countries in the region. Hussein said that petrochemicals' prices are closely related to prices of crude oil and its light derivatives, such as naphtha and natural gas, adding that with the increasing global demand for these materials, petrochemicals' prices are expected to remain in the current level of between USD 1,300-1,450 per ton. He added that with the failure to meet the steady increase in production to consumption, there will be an additional impact on prices and access to high levels in the near future. On the size of the company's production; estimated at five million tons per year of petrochemical products, and whether this production has increased, Hussein pointed to the possibility of growth of the Kuwaiti petrochemicals' sector by improving means of production or local expansion through the construction of new facilities or take advantage of acquisition opportunities outside. He said EQUATE started production in 1997 with a million metric tons per year and currently produces five million metric tons annually through its factories. He said the strategic direction for EQUATE is expansion, which would enable it to maintain competitive strength in regional and global markets. He added that this does not mean that the company has no desire to launch new products to suit the market and customer needs, as well as economic feasibility.

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