Transition to Chemicals – Will Value Creation Reach a Limit?

The Gulf is home to the world’s most exciting and ambitious Oil to Chemicals project, so it’s no surprise that the integration of refineries and petrochemical plants was addressed by the Board members. They noted that it would be surprising for any new project nowadays not to have a chemical element, with investments in petrochemicals considered a ‘no-brainer’. Looking beyond the Saudi Aramco and SABIC COTC project, the next step is to establish who might replicate the project, whether in the region or further afield – a topic that looks set to create heated debate at MERTC!

Despite the consensus that chemicals are the way forward, there was also a note of caution, with several Board members admitting that if the entire industry continues to move in the same direction, this might eventually destroy some of the value they sought to add.