"For Shell, the strong relationships we have developed with joint venture partners and customers have been key elements in our regional growth and success in the Middle East," says Ben van Beurden, Executive Vice President, Shell Chemicals. "Moving forward, the region continues to be a cornerstone of our global growth plans."
Shell companies have been involved in chemicals manufacturing in the Middle East for over 20 years. Two joint venture manufacturing facilities in the Middle East - Sadaf and Sasref in Saudi Arabia - serve customers throughout the region and beyond.
"For Saudi Arabia, Shell's joint ventures have provided key ingredients to build a domestic petrochemicals business that is world-scale, world-class and globally competitive," says Thierry Capelle, President of Shell Chemicals Arabia LLC.
Planning for the future
Planned petrochemical projects - largely based
on advantaged ethane gas feedstock controlled by major resource holders - will increase Middle East production capacity dramatically in coming years. However, in the medium and longer terms, limited availability of ethane and the narrow product slate available from this feedstock may constrain the region’s growth ambitions.
Shell’s Pearl Gas to liquids (GTL) Development in Qatar:
- The world’s largest and most complex GTL plant development covering 2.5 km2;
- Up to 40,000 people involved at the height of construction, using over 100,000 tonnes of structural steel and approximately 500,000 m3 of concrete;
- Will produce 120,000 barrels of oil equivalent per day of natural gas liquids and ethane;
- Incorporates the world’s largest industrial water recovery and zero-liquid discharge system
Gaining access to the region's reserves of advantaged ethane gas feedstock is important for Shell's long-term competitiveness, and a key element of the chemicals growth strategy.
Phil Parker, General Manager New Business Development Middle East, says, "Having access to advantaged ethane gas is important for us as it gives us a more balanced portfolio of feedstocks for olefins production."
Successful partnerships
While competition to establish partnerships and realise new investment projects is fierce, Shell has demonstrated its successful world-scale project capability in every continent worldwide.
"Shell also has leading technologies - including our proprietary styrene monomer/propylene oxide and ethylene oxide/glycol technologies - plus a wealth of operating experience. We are also able to offer a differentiated slate of chemical derivatives, plus the marketing, commercial and logistics expertise to bring products to developing and global markets," says Phil Parker.
The Pearl Gas to liquids (GTL) development in Qatar - the world's largest and most complex GTL plant, due on-stream in 2010 - is currently showcasing Shell's capability to execute and manage a vast construction project in the Middle East. In addition, it demonstrates an ability to maximise the potential of raw materials for fuel and chemicals production.
Ben van Beurden adds: "Being part of a major integrated energy company offers opportunities for Shell Chemicals to leverage strategic advantages in terms of inherent manufacturing synergies, and the ability to benefit from Shell's focus and investment in innovation and technology, which includes access to new sources and types of chemical feedstock."
This feature was added to the Innovations section in April 2008
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