Solid growth continues in the Middle East, India and Pakistan storage industries
Demand for refining, distribution and storage services and products in the Middle East, Arabian Gulf, India and Pakistan is very much on the increase. Reasons given for this are varied, including investment in additional refining capacity. However, the general consensus is that these regions are looking to develop their own manufacturing and processing infrastructures, resulting in a higher demand for energy products.
To a lesser degree, populations are on the increase and countries are investing more resources in tourism, thereby placing greater pressures on the infrastructure. In the Middle East and Gulf, this is driving forward the exploitation of new and older fields and additional investment in refining capacity.
The fast-growing economy in India has been well reported internationally. The economy in the April-June quarter of 2007 grew a faster-than-expected 9.3% from a year earlier, led by robust manufacturing and services. Reports from India indicate that refining capacity is expected to reach 152 million tonnes this year, rising to 257 million tonnes by 2012. In Pakistan and India, there is talk of opening up new reserves and developing greater refining capacities, all of which place increased demand on terminal and tank farm facilities.
According to Muhammad Rasheed Jung, MD of leading energy company Parco, the Pakistan GDP is rising to a 20 year high and energy forecasts show a growing energy deficit in the next 15 years, which must be catered for by enhancing the refining base in the country.
Lawrie Pattison from international marine terminal operatior DP World’s UAE region reports that for the Middle Eastern chemical, petrochemical and plastics industries, the opportunities are good in the global market. ‘The Gulf Cooperation Council (GCC) alone is expected to contribute more than 60 million tonnes of petrochemicals to the world this year, according to the Gulf Petroleum Chemicals Association (GPCA).’ He goes on to say that estimates indicate that the global petrochemicals industry will grow by another 13% in the region by 2010.
DP World is in a prime position to comment on what is happening throughout the Gulf and Middle East. Its Jebel Ali Port in Dubai saw the volume of petroleum products imported and exported increase to more than 21 million tonnes in 2006. Inevitably, this increase has led to the expansion not just of loading and unloading facilities but also an increase in tank storage.
Jebel Ali is on the agenda for international chemical distributor Solvochem, which is expanding its tank capacities in Jordan, Egypt and Kenya. Planning permission has been obtained from the Jebel Ali Free Zone Authority (JAFZA) for the construction of bulk storage tanks to be implemented in the near future. The extended terminal will also enable Solvochem to store more products from many multinational companies, making the terminal a hub for the supply of various products to customers in the Gulf, Africa, Asia and other markets.
‘This is being done to meet the growing market demand and increasing range of products,’ reports Solvochem’s MD Anthony Flouty. ‘The main factor behind our new tank expansion is the diversification of our product range. Our market share has been increasing and our ability to fully understand the complex customs and banking requirements of our markets have made us the preferred supplier for most of our customers. Additionally, by being positioned throughout the area, we are able to guarantee supply to customers from more than one location.’
