27 May 2007 - 10:35
  • News Code: 105642

SHANGHAI - ExxonMobil""s major petrochemical projects in Saudi Arabia, Qatar, Singapore and China will increase the firm""s total capacity in Asia and the Middle East by over 50 pct by 2012, Jim Harris, senior vice president of ExxonMobil Chemical Co said.

In an interview in Shanghai he noted that the company -- the largest petrochemical exporter to China -- aims to be able to meet all the increased demand expected from customers in the Middle East and Asia in the next few years.

"Over the next 10 years, we expect that 60 pct of the world""s petrochemicals growth will occur in Asia, over one-third in China alone," Harris said." By 2015 we expect Asia will account for 50 pct of global demand for petrochemical products, with China representing 25 pct."

ExxonMobil has so far invested 3 bln usd in facilities in China, including a plasticizer plant in Guangdong province, and an adhesive resins joint venture with Shanghai Petrochemical. Sales in China generate about 10 pct of ExxonMobil Chemical""s earnings, Harris said.

Last March ExxonMobil, China Petroleum & Chemical Corp (Sinopec), and Saudi Aramco set up two joint ventures with total investment of 5 bln usd to expand a Chinese petrochemical refinery and to operate a chain of 750 gasoline stations in Fujian province. The facility is the first foreign-financed fully integrated petrochemical plant in China.

Harris noted ExxoMobil currently has no other joint venture plan in China as it will "grow the capacity where we already operate."

China""s oil demand is expected to increase over 4 pct per year from 2000 to 2030, driven by growth in the number of cars, he said, adding the country""s natural gas demand is projected to increase over 7 pct a year over the same period. Demand will primarily come from residential and industrial uses near urban areas.

China will consume about 35 pct of the world""s coal output by 2030, and over half the global coal-demand growth through 2030 will come from China, Harris added.



News Code 105642

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