Saudi Basic Industries Corp, or Sabic, wants to invest in shale gas-based petrochemical ventures in the US, CEO Mohamed Al-Mady said Monday.
Sabic has been observing shale gas technology closely and has been looking forward to either directly invest in companies that use the technology or in joint-venture projects, Al-Mady told reporters on the sidelines of the Tenth Sabic Technology and Innovation Meeting, or STIM-10, in the port town of Jubail.
The Gulf Petrochemicals and Chemicals Association (GPCA), an organization that Al Mady heads, in a report in September suggested that investment in shale gas ventures is one of the options for Middle East companies to tackle a growing shortage of feedstock gas for new petrochemical projects in the region. The alternative option it suggested was to invest in downstream performance or specialty chemicals.
The GPCA study predicted the Middle East's gas shortage would rise from 32 billion cubic meters in 2012 to up to 51 Bcm in 2015 if the region continues to show a high rate of economic growth.
There will be almost no fresh ethane supplies in Saudi Arabia, the region's largest petrochemicals producer, over the next three years even as several new petrochemical projects come online during the period, data from the study showed.
