Projections that show global petrochemical demand increasing by 60pc in 15 years are "conservative," as solar panels and other energy transition materials will soak up these products, a Saudi Arabian energy ministry official said.
Saudi Arabia is working to double its own capacity for petrochemical production in about 10 years, assistant energy minister for oil and gas Mohammed A Al-Brahim said at the World Petroleum Congress in Calgary, Canada, today.
This will be done mainly by increasing integration at Saudi Arabia's own refineries to produce petrochemicals needed for projects both in the Middle East and globally.
A transition in building and construction materials from higher-emissions steel and concrete to petrochemical-based materials, such as polymers, will also boost demand, he said.
Not only can these materials reduce emissions, but they could also potentially last longer and be more sustainable.
A Al-Brahim sees India and China as also leading this development, both for petrochemicals and refined products.
Without the buildout, "otherwise you won't be able to build the [transition] facilities that you want to build," he said. While there is also an expansion underway globally in refining capacity, the petrochemical portion "is even more critical."
