GCC chemical revenue soars 10-year high 77% to $96bn in 2021: GPCA

Qatar will take part in the "exclusive" Ministerial Panel featuring energy ministers from across the GCC at the 16th Annual GPCA Forum in Riyadh in December, according to the Gulf Petrochemicals and Chemicals Association.HE the Minister of Energy Affairs Saad bin Sherida al-Kaabi will be on the panel that will address the topic "Balancing net-zero ambitions in the energy sector with growth – a policymaker’s balancing act”.The other panelists are Prince Abdulaziz bin Salman al-Saud, Minister of Energy, Saudi Arabia and Dr Mohamed Bin Mubarak Bin Daina, Minister of Oil & Environment, Special Envoy for Climate Affairs, BahrainAccording to GPCA research, GCC chemical revenue in 2021 soared by 77.2%, the highest level recorded since 2013 due to post-Covid recovery that led to increasing demand and high chemical prices globally. Quantifying, the chemical revenue grew to $96bn last year from $54.1bn in 2020.On the back of higher chemicals prices, GCC chemical trade balance revenue almost doubled between 2020 and 2021 from $27bn to $53bn, with trade balance volume also growing by 30%, reaching 56.5mn million tons.While the industry remained buoyant over the last 18 months, it is currently off track to achieve its ambitious net-zero targets by 2050. According to the International Energy Agency, globally direct CO2 emissions from primary chemical production amounted to 925tons in 2021, a 5% increase with respect to the previous year.This is due to a production increase to levels above those in 2019. In the GCC, average CO2 intensity increased by 3% in 2021 as emissions rebounded since the Covid-related lockdowns in 2020. Nonetheless, CO2 intensity has remained on a declining trend since 2013.GPCA Secretary General Dr. Abdulwahab al-Sadoun commented, "If the industry is to achieve its net- zero ambitions by 2050, it would need to focus on growing its utilisation of renewables, improving its energy efficiency, reducing its emissions, and capitalising on new markets for carbon and other by-products as part of the circular economy."Regional producers alongside their regional and global value chain partners are taking concerted steps, committing new investments and accelerating their research and innovation efforts in line with their decarbonisation efforts. Both the public and private sector have a crucial role to play on the road to net-zero."GPCA is, therefore, pleased to host some of the region’s most prominent policymakers for an exclusive ministerial panel where forum delegates will have an opportunity to hear first-hand about our regional governments’ plans and initiatives enabling the transition.”