United Arab Emirates Petrochemicals Report Q4 2017
BMI View: The UAE petrochemicals industry is setting out plans for another significant development with the planned world-scale Borouge 4, which will help the country achieve its goal of 11.4mn tpa capacity by 2025. This is a significant increase on the 4.5mn tpa capacity in 2017, following the completion of Borouge 3. However, capacities are unlikely to be known by end-2017 and the feedstock requirements have yet to be determined.
With 2017 set to be the first full year of production at all the plants in the Borouge 3 petrochemicals complex, the UAE's petrochemicals output is set to rise. National oil and petrochemicals producer ADNOC is planning to optimise the three Borouge complexes and also add a new polypropylene plant by 2021 with capacity of 500,000tpa. However, the lack of clarity on the progress of the ChemaWEyaat development, which has seen progress heavily lag behind schedule, indicates that ADNOC may be holding back investment due to market uncertainty and the need to assess the long-term trend in naphtha feedstock prices.