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Saudi Arabia is expected to have sufficient feedstock next year for new production capacities for National Industrialization Co. (Tasnee) and other petrochemical producers, Tasnee’s CEO Mutlaq Al Morished told Argaam, on the sidelines of the annual GPCA Forum in Dubai.
“Tasnee has applied to the ministry to secure feedstock” Al Morished said.
The company focuses on petrochemicals, as profitability from the sector is better when compared to other basic materials. However, the sector is facing various challenges, mainly the availability of feedstock.
“Tasnee welcomes new partnerships and mergers to achieve interest of all stake holders. It is also planning to start talks with Lyondell Basel for joint ventures,” the CEO added.
Prices have not improved in the current quarter. Most sector analysts do not expect prices to rise ahead of H2 2020, unless the US and China reach a commercial agreement, he concluded.
Argaam publishes on a weekly basis Argaam Petrochemical Index, which measures the average change in prices of a basket of petrochemical products produced in the GCC.
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Tasnee says feedstock supply shortage down to 25% |
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