Doha: The Gulf’s fertilizer manufacturers must diversify their portfolios to withstand future oil and gas feedstock challenges, advises the Gulf Petrochemicals and Chemicals Association (GPCA), which will host its fourth annual Fertilizer Convention in Dubai from September 22.
With the increasing demand for power and water desalination in the GCC countries, hydrocarbon reserves are becoming more expensive for the region’s fertilizer producers.
“GCC producers must diversify their fertilizer portfolio to include more phosphate fertilizers, as this will decrease their reliance on hydrocarbon feedstock and grow their share of export markets,” said Dr Abdulwahab Al Sadoun, Secretary General of the GPCA. “Phosphate fertilizers require less natural gas to produce and are a relatively untapped resource in this region.”
The continued evolution of the GCC’s fertilizer industry has been enabled by the abundant supply of favorably priced natural gas, explained Dr Sadoun.
According to GPCA data, nitrogen fertilizers like ammonia and urea are manufactured by a hydrocarbon intensive process and currently make up the bulk of the region’s fertilizer portfolio.
The share of phosphates currently makes up a fraction of the region’s fertilizer portfolio, with a production capacity of just 3.4 million tonnes. Phosphate fertilizers will reach 5.5 million tons of capacity by the end of this decade.
The Peninsula
