Home / Knowledge / News / Textiles / Saudi Arabia could become global ethylene hub: NCB
Saudi Arabia could become global ethylene hub: NCB
Jul '13
Saudi Arabia could well become a global hub of ethylene and its derivatives, according to a latest report released by the National Commercial Bank (NCB).
The recent shale oil and gas deposit discoveries in Saudi Arabia would drastically change the global landscape of the petrochemical industry over the next five years, according to the NCB’s Semi-Annual Sector Review.
The review states large capacity additions are to be expected from both Asian as well as Middle Eastern producers due to these discoveries, whereas high-cost producers from other parts of the world would be squeezed out and petrochemical prices are likely to come under pressure in the long term, reports Saudi Gazette.
The abundance of ethane rich associated gas sold at a subsidized rate of US$ 0.75 per million btu has initiated the launch of a series of projects in the country which would make it a global hub of ethylene and its derivatives. 
The NCB report said the proximity to dominant Asian markets would allow producers from the country to capture a greater share of demand and also encourage foreign investment.
The country’s capacities of ethylene and polyethylene are forecast to reach 16.08 million tons per annum (mtpa) and 5.45 mtpa by 2015, respectively. 
This would lead to the procurement of propane at discounted rates to the naphtha export price thereby making propylene a commonly used olefin.
However, the report also suggests that the petrochemicals sector would face challenges most importantly due to the scarcity of ethane and the need to diversify into more versatile feedstock such as naphtha. 
Saudi Arabia is considered among the largest producers of polymers in the world with an annual production of more than 8 million tons. In 2012, Saudi Arabia produced more than 18 million tons of ethylene, the most basic petrochemical that is also used as a raw material for the textile industry.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search