Low oil prices have had a deleterious effect on Central Asia's petrochemicals potential. With ethane the main feedstock, petrochemicals production looks less attractive. The region is therefore set to remain a net importer of polymers and other derivatives.
Uzbekistan began commercial operations at the new Surgil petrochemicals complex in 2016 with capacities of 400,000 tonnes per annum (tpa) tpa ethylene, 400,000tpa high density polyethylene and 100,000tpa polypropylene (PP). This raised regional petrochemicals capacities to 640,000tpa ethylene, 525,000tpa polyethylene and 220,000tpa PP. In global terms, Central Asian producers remain minnows in the industry, in spite of the region's considerable energy resources. Petrochemicals consumption is also low, making the region a poorly developed market.
In 2016, South Korea's LG Chem cancelled its plans to build a USD4.2bn petrochemical complex in a joint venture with Kazakhstan Petrochemical Industries. It was to produce 840,000tpa of ethylene, 400,000tpa of low density polyethylene (LDPE) and 400,000tpa of linear low density polyethylene (LLDPE). As a result, the complex has been removed from our forecasts.
Plans for a new PP facility in Kazakhstan have also been mothballed following the withdrawal of Chinese partner, removing 500,000tpa of PP from our forecasts.
Uzbekistan is set to be the most dynamic market for petrochemicals in Central Asia as its industrial performance outclasses the rest of the region. However, petrochemicals consumption will still be negligible in world terms.
The Kazakhstan & Uzbekistan Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.
BMI's Kazakhstan & Uzbekistan Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Kazakhstani, Uzbekistani petrochemicals industry.
- Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Kazakhstani, Uzbekistani petrochemicals market.
- Target business opportunities and risks in the Kazakhstani, Uzbekistani petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Kazakhstan, Uzbekistan.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis, covering the petrochemicals markets, regulatory changes, major investments, projects and company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the petrochemicals sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Energy: Oil production (‘000 b/d), oil consumption (‘000 b/d), net oil exports (‘000 b/d), gas production (bcm), gas consumption (bcm), net gas exports (bcm), oil refinery capacity (‘000 b/d).
- Petrochemicals: Ethylene capacity (‘000 tpa), ethylene production (‘000 tpa), ethylene consumption (‘000 tpa), polyethylene capacity (‘000 tpa), polypropylene capacity (‘000 tpa), polyvinyl chloride capacity (‘000 tpa), polyolefins consumption (‘000 tpa).
- Oil Products Prices: Price forecasts for all major oil-based products (USD/bbl) at major global energy trading hubs.
- Economic: Nominal GDP (USDbn), real GDP growth (%), GDP per capita (USD), population (mn), unemployment (%), exchange rate (against USD).
BMI’s Petrochemicals Risk Reward Index
BMI’s Risk Reward Indices provide investors (both corporate and financial) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Structure, size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.
Industry Trends & Developments
Evaluation of company and sector-wide developments, including key projects (as well as expansion plans), latest company financial details and proposed international ventures.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Global & Regional Market Overview
Analysis of the key trends driving the global industry, including worldwide output/capacity and demand analysis across ethylene, polyethylene, polyvinyl chloride, polystyrene, polyethylene terephthalate and polypropylene. The regional analysis looks at the implications of local and global trends on specific company activity.
Sub-sectors covered by the Petrochemicals Reports include:
Oil & Gas, Oil Refining, Olefins (ethylene, propylene), Polyolefins (polyethylene, polypropylene), Polyvinyl Chloride, Polystyrene
Please note – not all country Reports cover all sub-sectors – see website for details.
The Petrochemicals Market Reports are based on a network of primary sources, such as multilateral organisations (ACC, APLA, Cefi c, ICCA, ICMA), national chambers of commerce and industry, national statistical offi ces, government ministries and central banks, and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.