With two new gas projects coming onstream, Abu Dhabi’s LPG output is set to see a stark increase of 3.6 million mt from this year’s output to 13.761 million mt by 2017, rocking Qatar’s status as the top Middle Eastern LPG producer and exporter.
The two new gas projects comprise of the 3.3 million mt/yr Integrated Gas Development and 810,000mt/yr Shah Gas Development, both slated to come onstream in the fourth quarter of 2013 and 2014 respectively.
LPG production in Abu Dhabi is forecasted to see an 11-12% increase over the next two years before slowing down to hit 13.761 million mt in 2017. Despite the substantial growth, the actual export values cannot be determined as the region’s domestic demand is growing as well.
Apart from potential increase in power utilities, Abu Dhabi will also see a greater cut of LPG going towards the petrochemical sector with the development of Madeenat ChemaWeyaat Al Gharbia chemicals industrial city in western Abu Dhabi. Fortunately, Qatar’s increased attention in its petrochemicals sector will also see an increased consumption in Qatar’s LPG feedstock.
With new projects and plans coming onstream, the LPG sector in Middle East remains competitive, presenting multiple opportunities and possibilities. Industry leaders are set to convene in Doha this November 18-20 at CMT’s 8th LPG Trade Summit for more timely updates, discussions and networking opportunities.