Segment Rational

RATIONAL

For the last 50 years, the basic chemicals sector in KSA has seen an accelerated development via the monetization of stranded gas, bringing the total capacity installed in the Kingdom to over 100 million tons per annum. This has made SABIC a top-four global player and supported the development and expansion of an increasing number of other local players that have an international presence. The KSA basic chemicals industry is well positioned to continue expanding to maintain its global leadership in select value chain segments. It will do so by leveraging its cash cost advantage and market position and integrating new technologies and feedstocks to replicate this success with liquid cracking configurations and portfolios.

Segment Trends and Value Proposition

SEGMENT TRENDS

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Shifts in feedstocks mix

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Technology advancements

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Circular economy

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Trade uncertainties

VALUE PROPOSITION

• The global chemicals market is expected to grow at a 3.7% CAGR, doubling production volumes from 1,870 mn ton/year in 2020 to 3,867 mn ton/year by 2040.

• The chemical sector is also expected to be a driver of demand for oil & gas, gaining share from all other segments, from ~13% in 2020 to ~31% in 2040.

• Basic chemicals present an opportunity to extract higher value-added from oil while keeping the Kingdom’s players at the forefront of the sector’s trends and technologies (e.g., shift to MFC, COTC, and PDH).

• Basic chemicals are critical in the activation of downstream industries (intermediate, specialty, and conversion chemicals) as well as the enablement of adjacent industries.

Global Production Of Chemicals Products

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• The global chemicals market is expected to grow at 3.7% CAGR, doubling production volumes from 1,870 Mn Ton/year to 3,867 Mn Ton/year by 2040.

• Chemical sector is also expected to be a driver of demand for oil & gas, gaining share from all other segments, from ~13% in 2020 to ~31% in 2040.

• As oil demand continues to grow but is expected to peak by 2040, chemicals is becoming a most relevant area of focus for O&G countries and companies.

Global Oil & Gas Consumption By Sector (%)

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• The global chemicals market is expected to grow at 3.7% CAGR, doubling production volumes from 1,870 Mn Ton/year to 3,867 Mn Ton/year by 2040.

• Chemical sector is also expected to be a driver of demand for oil & gas, gaining share from all other segments, from ~13% in 2020 to ~31% in 2040.

• As oil demand continues to grow but is expected to peak by 2040, chemicals is becoming a most relevant area of focus for O&G countries and companies.

Market Evolution Of Chemical Sales Per Region

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• Growth is driven by Asia, with China alone owning almost half of the market size of global chemical sales by 2030.

• Market growth in value is higher than global production expansion (in value estimated at CAGR of 5.4%) given that portfolio is steering towards more innovative and higher value-added products.

US and China Ethylene and PE Export Forecast

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Projections shows that China may be able to balance flows only with shale gas-based volumes from the US.

Breakdown of Chemicals by Major Groups

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KSA’s global share in chemicals volume is 4.7%, with a portfolio concentrated in basics and intermediates produced with gas crackers output.

Global Liquids Demand by Sector

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Global Petrochemicals Feedstock Consumption

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• Shale gas in US has given rise to supply growth of ethane and LPG (propane, butane) but feedstock advantage is expected to erode with increase demand for ethane and propane which would drive up prices.

• China uses low grade coal to produce methanol (syngas) – share of methanol as feedstock to olefins is growing.

• Pace of development in shale gas and syngas is expected to slow down post 2030.

• Producers interested in polyethylene business typically employ ethane feedstock, while producers of polypropylene and butadiene derivatives consider heavier feedstock slate.

Global Organic Fertilizer Target Market Size

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Global Compost Fertilizers Market Size

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Global Compost Fertilizer Imports

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Global Compost Fertilizer Import Market

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Local Production of Compost Fertilizer

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Local Organic Fertilizer Trade Data Imports

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Local Organic Fertilizer Shares By 2023

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C1 Chain Additional Capacity Forecast

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C2 Chain Additional Capacity Forecast

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C3 Chain Additional Capacity Forecast

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C4 Chain Additional Capacity Forecast

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Aromatics Chain Additional Capacity Forecast

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Inorganics Chain Additional Capacity Forecast

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National Recycling Rate (tons of material recycled)

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The data and information provided through Daleel platform are for indicative purpose, the provided data and information can be assessed further and analyzed as part of the feasibility studies. In addition, following are other key sources of information that can be used for business case development.

Key Sources for Data

National Geological Database

Reliable national geological and topographic data repository for the whole kingdom of Saudi Arabia including geological and topographic maps, Mineral Occurrences Documentation System (MODS), geochemistry and geophysics data, borehole data, surface samples data and more.

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Invest Saudi

For information about investment opportunities in the kingdom to both foreign and domestic investors, as well as private sector businesses please visit Invest Saudi

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Tariff Rates and Data

Through the website of the Zakat, Tax and Customs Authority, you can find the tariff rates and data for all kinds of products.

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Import Data

Through the website of General Authority for Statistics, you can find detailed data on Import Statistics for all kind of goods.

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Export Data

Through the website of General Authority for Statistics, you can find detailed data on Export Statistics for all kind of goods.

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Factories Directory

The Factories Directory is provided by the National Industrial Information Center to enable the user to inquire about factories in the Kingdom by activity, production and location, in addition to other data and information.

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Ministry of Economy And Planning

A unified platform to present and analyze the latest economic and social the kingdom and its regions in visually interactive ways that facilitate understanding of the Saudi economic landscape.

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