INEOS announces $2bn chemicals investment in Saudi Arabia

Ethylene is the basic raw material of petrochemical industry and vital to a country’s manufacturing industry. The self-sufficiency in China had been around or below 50% before 2021, there is a big gap between ethylene capacity and its equivalent demand. That’s why ethylene self-sufficiency has frequently mentioned and emphasized in every five-year plan in China. The massive investment in 2020-2026 will help China to improve self-sufficiency to 89% in 2026,but still not 100% yet. Is it feasible for China to reach 100% self-sufficiency before 2030? How much is the gap and what’s the limitations that need to be overcome? What will happen if China reaches 100% self-sufficiency in 2030? In this insight, we will address these questions.

These briefings were an informal 60 minute discussion on the key events and topics shaping our industries with an opportunity for networking. The COVID recovery and energy crisis related to the Russia-Ukraine war have seemingly taken a back seat. However rapidly increasingly interest rates to fight off inflation, slow economic growth in China and a recession in Europe keeps the outlook uncertain. OPEC+ is adjusting its output decisions monthly, distillate cracks are strong despite tepid demand growth and China’s crude runs could remain high despite its economic weakness. Our team discussed the following themes: Short term oil demand: How real are the hopes of demand recovery in China? Can the West avoid a recession? What’s happening to petrochemical demand? Short term refining margins: How much value is there in petrochemical integration? Middle-distillate cracks: How long can they stay strong? Crude prices and Brent-Dubai differential: Saudi volumes and OSP forecast?