The Qatari petrochemicals industry’s capacity will continue to rise, but high ethane prices and a lack of downstream diversification could upset chances to compete in the global market in the long term, according to a new report
The Research and Markets' report entitled Petrochemical Industry in Qatar said that Qatar was currently concerned with potential constraints on ethane availability and the cost of supply, adding that the authorities were likely to decide to limit gas production to extend the lifespan of productive fields and could raise prices further.
Research and Markets said that Qatar would benefit from international sanctions against Iran – it is its closest rival in terms of future petrochemicals capacity after Saudi Arabia. Iran is capable of accounting for nine per cent of future global ethylene capacity, the report added.
Qatar has, meanwhile, planned to constructed crackers with an ethylene capacity of around 1.5mn tpa, on which completion would be expected within five years.
