PODCAST: Middle East liquids-to-chemicals will add to global oversupply

BARCELONA (ICIS)–Two liquids-to-chemicals project announcements by Saudi Aramco highlight a new source of rapid capacity growth which will add to global overcapacity.

• Middle East oil and gas companies want to push crude-oil-to-chemicals (COTC) as demand for transport fuels declines
• Saudi Aramco aims to convert around 4 million barrels/day of crude oil into chemicals by 2030 versus about 1 million barrels/day currently
• Demand growth will not be sufficient to meet rising supply
• More closures will be needed to balance the market

In this Think Tank podcast, Will Beacham interviews ICIS market development executive John Richardson and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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