Source: The Peninsula
Doha: The production capacity of the GCC’s fertilizer industry is set to rise 47 percent to 46.4 million tonnes by 2018, due to $10bn worth of projects in the pipeline, according to estimates by the Gulf Petrochemicals and Chemicals Association ( GPCA ).
In 2012, GPCA estimated that the GCC fertilizer production capacity reached 31.4 million tonnes.
Demand for gas is soaring across the GCC as it is widely used to generate electricity. Both the UAE and Oman have key LNG import contracts, which help the development of the region’s downstream industry.
Gas production is also increasing in Qatar and Saudi Arabia further bolstering GCC fertilizer production. The region’s fertilizer capacity is expected to grow at an average of 10 percent over the next five years. In comparison, the global fertilizer demand will grow just 1.8 percent every year by 2017.
However, Dr Abdulwahab Al Sadoun, Secretary General of GPCA , advised that environmental conservation and social responsibility will be key elements to consider while fertilizer companies strive to maximise profits. Several regional producers have already implemented strategies to reduce greenhouse gas emissions, recover carbon dioxide and reduce water consumption.
“Faced with constraints in the supply of natural gas, the GCC fertilizer industry is actively pursuing a number of projects to optimise energy and water resources, as well as the conservation of natural resources,” said Abdulwahab Al Sadoun, Secretary General of GPCA , on the final day of the 4th Annual GPCA Fertilizer Convention.
This year’s convention comprised 24 commercial and technical presentations and 25 industry experts speaking on key topics affecting the GCC, the Americas, China, India and Africa. The GCC’s fertilizer industry is a cost leader and must continue to improve its cost-leadership in order to retain its global competitiveness, Dr. Al Sadoun added.