Episode 1277: Think Tank: Middle East liquids-to-chemicals projects will add to global oversupply
Two liquids-to-chemicals project announcements by Saudi Aramco highlight a new source of rapid capacity growth which will add to global overcapacity.- Middle East oil and gas companies want to push liquids-to-chemicals as demand for transport fuels declines- Aramco aims to convert around 4 million bbl/day of crude oil into chemicals by 2030 versus about 1 million barrels/day currently- Demand growth will not be sufficient to meet rising supply - More closures will be needed to balance the market