Page 178 - CW E-Magazine (7-1-2025)

18th Annual GPCA Forum

its success in creating globally com- inorganic expansions in the petro- is exploring acquisition opportuni-
petitive petrochemical enterprises, he chemical sector. Domestically, KPC ties to strengthen its position in key
said. is conducting feasibility studies for markets. He noted that current market
a fourth olefin train, buoyed by the conditions favour bold actions, allow-
Mr. Al-Sabah highlighted the recent allocation of sufficient gas re- ing KPC to secure strategic assets at
company’s plans for both organic and sources. Internationally, the company competitive valuations.

CHEMICAL INDUSTRY CHALLENGES
Innovating and meeting evolving market needs

amidst energy volatility, disrupted supply chains
and decarbonisation push

The global chemical industry, which cal industry will be carbon management,
has long been a cornerstone of global said Mr. Eramo.
progress, is navigating a complex land-
scape of geopolitical turmoil, technolo- “The chemical industry must bal-
gical shifts, and growing environmental ance the need for capital investment in
concerns and the next 10 years will be traditional assets with the imperative to
shaped by several key drivers, including reduce carbon emissions. Effective car-
energy volatility, shifting global supply bon management will be a key factor
chains, and the ongoing push towards in deciding where and how new petro-
decarbonisation, according to Mr. Mark chemical assets are built over the next
Eramo, Co-President and Global Head decade,” he said, emphasising that the
of Fuels, Chemicals & Resource Solu- future of petrochemical production
tions, S&P Global Commodity Insights. will require a careful balance between
economic growth and environmental
Highlighting the issue of energy volati- responsibility.
lity, Mr. Eramo pointed how the rela-
tionship between crude oil prices and Mr. Eramo underscored the role of
petrochemical pricing has been in flux technological innovation in achieving
in recent years. “We are currently in a a low-carbon future. Advancements in
period of oversupply, which has placed carbon capture, renewable feedstock,
significant pressure on profitability. At Mr. Mark Eramo and the recycling of plastic waste will be
the same time, investments are needed “The sharp decline in China’s ethy- critical in helping the chemical industry
to meet decarbonisation goals and lene-equivalent imports, from a peak of meet sustainability goals.
support the transition to a low-carbon nearly 30-million tons in 2020 to just
future,” he noted. under 20-million tons today, is a key “The next decade will present signi-
trend reshaping global markets. This ficant challenges, but also tremendous
S&P Global’s forecasts suggest that shift, driven by China’s push for self- opportunities. The chemical industry has
energy prices will remain high and vola- sufficiency, has disrupted investments always been resilient, and with the right
tile, creating both risks and opportunities worldwide, especially in regions that combination of technology, policy, and
for producers worldwide. anticipated continued growth in Chinese market acceptance, we can continue to
demand. As domestic demand fluctuates lead the way in solving some of the world’s
Mr. Eramo also discussed the shift- and China turns to increased exports, most pressing problems. It will require a
ing dynamics in global supply chains, the global industry must recalibrate,” he concerted effort from all stakeholders to
with a particular focus on China’s grow- said. ensure that the advancements we make are
ing self-sufficiency in petrochemical sustainable, both economically and envi-
production. Another critical theme for the chemi- ronmentally,” he concluded.

178 Chemical Weekly January 7, 2025

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