Saudi Arabia should consider revising feedstock and energy prices, as they weigh on petrochemical producers, Tasnee chief executive Mutlaq Al-Morished told Al-Ekhbariya TV this week.
The Kingdom’s chemical and petrochemical industries have become less competitive, due to the lack of sufficient feedstock and high costs of raw materials and energy, he said.
Electricity for the Saudi industrial sector is priced at SAR 0.18 ($0.5), higher than the tariff applicable in the United States, even though Saudi producers are paying freight costs for long distances.
Local petrochemical firms, therefore, have started to eye investments outside the Kingdom, as they will not be able to compete in current market conditions, Al-Morished said.
However, sufficient feedstock supplies will revive the Saudi petrochemicals industry, he added.
Meanwhile, Al-Morished said that Tasnee has a solid position, adding that the Hail and Jazan plants have started trial operations.
The Tadawul-listed petrochemical firm is likely to complete its titanium sponge plant in December and begin operations in 2018, he added.
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