Middle East Chemical Week Preview

The event this year will be held in Abu Dhabi National Exhibition Centre (ADNEC) from 16-19 October, and is expected to attract more than 350 delegates.

Last year, MECW’s 2010 edition attracted 239 individual participants, 113 companies, 29 countries, 26 speakers and 19 sponsors and exhibitors. The event brought together key personalities from companies and national bodies, such as the Royal Commission for Jubail and Yanbu, SABIC, Saudi Aramco.

This year’s event will feature two independent conferences: The 6th edition of Petchem Arabia and the fourth edition of the Middle East Fertiliser Symposium, which will run parallel to each other.

The four-day conference and exhibition, dedicated to the petrochemical and fertiliser industry, will bring together leading players in the sector to address how the Middle East region can improve its competitive position in the global market.

Over four days, Abu Dhabi will play host to governments, petrochemical and fertiliser producers, EPC contractors, technology providers, consultants, investors, and converters looking to invest in the GCC.

“Middle East Chemical Week 2010 proved beneficial to all who attended. This year, diversification, feedstock alternatives, operational excellence and supply chain optimization will dominate the conference’s discussions,” says Dominica Andrews, project director at the World Refining Association.

“We want to give participants the opportunity to understand how different sectors are tackling common issues such as developing feedstock alternatives, improving energy efficiency, turning supply chain management into a competitive advantage and improving production margins.”

Petchem Arabia
A pre-conference focus day will have industry experts explore the challenges and opportunities of building an environmentally-friendly downstream petrochemical industry in the GCC, given the current growth in the region’s market.

Day one of the Petchem Arabia conference will provide a comprehensive analysis of the global petrochemicals market. Distinguished speakers will explain how the strategic location of the Middle East provides a unique opportunity to capitalise on lower costs and maximise production.

A panel discussion will conclude the first day of the conference by highlighting the trend of utilising naphtha instead of ethane, and the investment opportunities and competitive advantage the Middle East has compared to the rest of the world in petrochemical production.

The prime focus of day two is supply chain optimization. The advantages and disadvantages of in-house versus outsourcing options will be highlighted and speakers will demonstrate how use of efficient logistics and innovative technologies can lower costs and raise profit margins.

Hydro crackers in the Middle East’s petrochemical industry are increasing in size to achieve economies of scale. Day two will end with a debate on whether the size of crackers maximizes or inhibits profitability.

Day three will see the focus shift to catalyst innovation, with technical staff and experts from petrochemical companies demonstrating the various reactions of catalysts and how to recycle the substances as well.

Fertiliser Symposium
The Fertiliser Symposium will provide a holistic view of the fertiliser industry in the Middle East. A gasification innovation workshop will be held the day before the symposium commences to provide the latest gasification solutions and also explore feedstock options to take advantage of growth opportunities.

Day one of the symposium will see industry professionals explore how biofuels, biochemicals, natural gas, government regulation and other factors affect fertiliser production. In addition, a panel will discuss how the competitiveness of fertiliser producers will be affected in relation to organic and chemical fertilisers and the political landscape of the Middle East Region.

On day two, speakers will demonstrate how to improve productivity and efficiency in fertiliser production. They will highlight how new technologies in fertiliser plants can reduce energy consumption, improve product quality and maximise profits. Furthermore, fertiliser producers will discuss the challenges facing them and ways to improve the sector as a whole.

As with Petchem Arabia, the Fertiliser Symposium has a post-symposium catalyst innovation day. The technical staff of fertiliser companies can see how various catalysts can be used to improve product quality and meet environmental standards.

Companies attending the event are optimistic about the future trends in the two industries, fertiliser and petrochemicals.

“For the fertiliser sector, the fundamentals (i.e. grain prices and farmer economics) remain solid and this should support demand into 2012. However, for the nitrogen and phosphate markets, in particular, there is key risk of over-supply which could pressure pricing. Much will depend on the evolution of China’s export policy. We see this China as the key swing factor.” says Heidy Rehman Citigroup Global Markets Citi Investment Research.

“For the petrochemical sector, a resilient oil price and a positive GDP growth outlook (Citi forecasts global GDP growth of 3.8% for 2012 with China at 9.0%) is supportive of demand. However, focus will remain on how fast tightening measures ease in China,” she says.

“Citi prefers those companies with exposure to the tighter co-product markets.
Ethylene capacity additions remain a concern. CMAI is now forecasting 13.7 million tonnes of additional ethylene capacity from 2012-14,” Rehman notes.

Petrochemical trends will emerge or be reinforced by 2012, Dr Trevor Hutley, general manager, product and technology development at SIPCHEM. “A very big trend I see is the renewed attractive of petrochemical feedstock in North America and continued investment through joint venture in the Middle East,” he says.

“Human resource challenges and limitations and the lack of trained and experienced and motivated and capable local people, combined with the difficulty in getting trained people in to the countries (KSA being a particular issue),” he notes.

Dr Hutley will present a paper during the conference. Regarding emerging markets, experts expect a slowdown in growth.

“A growth slowdown in the developed and emerging economies is expected to emerge in 2012,” says Paul Hodges, chairman, International eChem.

The event is an opportunity for companies to present their latest innovations. “We will be presenting our nucleating agents for polypropylene during the MECW2011: our nucleating agents’ cost are comparable to conventional nucleating agents but the performance similar to advanced nucleating agent,” says Sami Palanisami, market manager Plastic Additives EMEA Milliken & Company.

Improved efficiency is the biggest concern of any plant operator, and companies attending the MECW are here to promote innovations that meet this demand. “We want to showcase the continuous reactors and crystallisers, to replace stirred tank reactors currently used for many chemical processes. They provide greater reliability and scalability, plus the ability to significantly reduce capital and operating costs,” says Hodges.

The event is set to offer an opportunity for delegates to share valuable lessons learnt from the biggest integration, new build and expansion projects. “We want to be part of what seems to be a very interesting panel of experts from whom I am keen to share views,” says Rehman.

MECW will also offer excellent networking opportunities with industry peers and decision makers, and the chance to win new business. “We are looking for networking opportunities that the event offers,” concludes Hodges.

Don’t miss

MECW 2011 Awards
The awards are being presented by the World Refining Association and are fully endorsed by Refining and Petrochemicals Middle East. Winners will be announced during MECW 2011 at the Abu Dhabi National Exhibition Centre on 17 October.

The awards will be presented to both petrochemical and fertilizer organisations:
Plant of the Year:
Awarding a plant who has achieved operational excellence and made significant environmental contributions.

Project of the Year:
Awarding a producer/EPC contractor who has implemented a new build, revamp or capacity expansion project on time and within budget with a strong safety record.

Technology of the Year:
Recognising a company for developing and/or improving upon an existing technology which drives the industry forward.

Main speakers
– Dr Alaa Nassif: executive president, Royal Commission for Jubail and Yanbu.
– Mohamed Al Rashid: general manager, Ruwais Fertiliser Industries (Fertil).
– Saleh Al Nazha: president and Chief Operating Officer, Tasnee.
– Omar Bahobail: President, Al Waha Petrochemical Company.
– Faisal Al Shemsi, Senior VP, Borouge