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The article discusses the role of ethane availability and feedstock pricing in the future growth of the petrochemical industry in the Middle East. According to Tony Potter, managing director for Middle East and India at CMAI (Dubai), the region's development is dependent on new supplies of feedstock being made available. Market players say that future projects are expected to shift to a larger portion of liquid feed. The issue of liquefied petroleum gas (LPG) pricing is also noted.

The article focuses on the new projects deing developed by engineering and construction (E&C) firms in the back of the Middle East's low-cost ethane. It is inferred that these projects are increasing in size and scope, with more downstream units in Saudi Arabia and the United Arab Emirates. It cites that rising costs for labor and materials have helped increase project costs, and both operators and contractors are facing shortages in skilled personnel.

The author comments on ways on how Mideast countries resolved problems associated with ethane. The author states that ethane is considered a problem to numerous petrochemical companies due to its very low prices despite the high cost of cracking feedstock. Moreover, the challenges experienced by several Mideast nations and how they solve the issue are also stated.

The author discusses the aspects of petrochemical industry in Middle East countries based on the analysis by Hassan Ahmed of Alembic Global Advisors. Ahmed projects high costs for ethane production in Qatar, Iran, and Saudi Arabia as feedstock costs increase and ethane supplies decrease. He states that the Qatar government set a five-year moratorium in 2005 for increased development project at its offshore gas North Field.

The author reflects on Europe's need to exploit its shale gas reserves in order to maintain low-cost feedstock supplies. It states that the U.S. chemical industry has been reinvigorated by abundant inexpensive supplies of ethane derived from shale gas. It comments on the growth of chemical industries in the Middle East and mentions that plans by Polish companies to increase shale gas exploitation could be blocked by the European Commission.

This article looks at the trends and issues concerning the petrochemical industry. Middle East producers and their partners are capitalizing on their low-cost feedstock position to establish the dominant global export position in petrochemicals, transforming global chemical markets and trade. Ethylene capacity is set to triple over the next 10 years, and by 2010 the Middle East will become the only regional net exporter of ethylene derivatives. Future projects face economic challenges like shrinking ethane supply and rising energy values.

The article reports that ethylene crackers in the Gulf Cooperation Council (GCC) states could face increased pricing pressure from shortages of ethane feedstock, according to Ali Aissaoui, head of research at Arab Petroleum Investments Corporation (Apicorp). Producers in the United Arab Emirates (UAE), Saudi Arabia and Kuwait are most likely to face dwindling high-quality and low-cost gas supplies.

The article reports on the decision of petrochemical producers in the Middle East to retain their cost leadership in ethane-based chemicals. It was noted that high cash margins and abundant reserves will continue to give the region a vast cost advantage. Worldwide, propylene demand growth still outpaces the growth rate for ethylene and the focus of the U.S. Golf Coast is now on propylene, vinyls and styrene.

Reports on the possible impact of the Middle East basic chemicals and plastic capacity production on global supply and demand dynamics. Number of tonne of basic chemicals and plastics produced per year in the region; Details of the pressure on margins in the U.S. and in Europe from high feedstock costs; Comparison of the cost of ethane in Saudi Arabia and in the U.S.; Driving forces that have kept the Middle East enter its waves of investment.

Reports that Middle East is set to retrain its feedstock advantage over Europe, U.S. and Asia. Factors needed to be able to acquire the dominant position in global petrochemical industry; Cost of ethane in the Middle East; Changes in the pricing mechanism for propane.

States that the Middle East petrochemical industry will continue to capitalize on its cost advantage in feedstocks, which could prompt additional foreign investment in the region. Establishment of ethylene capacity production in the region; Role of the availability and price of ethane on the competitiveness of the industry; Impact of the availability of land on the success of business operations.