Saudi Arabia and the emirate of Abu Dhabi are to more than double their production of petrochemicals.

Oil producers say they are prioritising a more diverse output to help ‘wean’ their economies off crude; they want to produce chemicals that are used in plastics to serve growing consumer-goods markets — particularly in Asia — and to make plastics themselves.

Sultan Ahmed Al Jaber, chief executive officer of Abu Dhabi National Oil Co (AbNoc), said: “By 2030, Asia will become the main driver of global economic growth, as well as the world’s largest market for consumer goods.”

Speaking at a conference in Dubai, he added that “demand for petrochemicals will have doubled, representing an unprecedented market opportunity.”

AbNoc says it is targeting an increase in petrochemicals output to 11.4 million tonnes a year by 2025, up from 4.5 million currently.

Also speaking at the conference was Abdulaziz Al-Judaimi, head of Saudi Arabian Oil Co’s downstream business, who said its output of petrochemicals will be increased from the current 12 million tonnes a year to 34 million
by 2030.

Saudi Aramco, as the company is known, says it will soon have integrated chemical-production facilities at nine of its 15 crude-processing plants.

Yousef Al Benyan, CEO of Saudi Basic Industries Corp, said that Saudi Arabia and Abu Dhabi face stiff competition from the USA, where chemical manufacturers are benefitting from increased output of natural gas — a feedstock for chemicals — at shale wells.

“Fracking in the USA has changed the market picture by providing abundant ethane gas for chemical expansion there,” he said.