JEDDAH – The methanol market in Saudi Arabia accounted for a staggering 85 percent share of the overall methanol market in the Middle East and Africa combined, Research and Markets said in a new study. “There is no doubting the fact that Saudi Arabia is the largest consumer of methanol in the region,” it said. During 2006-2011, the Saudi Arabian economy enjoyed healthy economic growth due to high oil prices globally and it had the world's fourth largest natural gas reserves, which facilitate relatively cheap feedstock for the production of methanol in the region. This was supported by the government's attempts to diversify the Saudi Arabian economy and capitalize on the easily available and inexpensive feedstock. This has led to growth in both the supply and demand for petrochemicals in Saudi Arabia. Currently, the Kingdom's methanol exports are greater than its imports, making the country a major exporter of methanol. With the addition of methanol capacities planned for the next 10 years, exports are expected to increase further in future. Mitsubishi Gas Chemical Co. Inc., Saudi International Petrochemical Company and Japan-Arabia Methanol Company Limited are the biggest players in the industry. The Ar Razi plants are located in the methanol complex at Al Jubail in Saudi Arabia. The plant complex is owned by the Saudi International Petrochemical Company (SIPC), also called Sipchem, through its subsidiary the Saudi Methanol Company. In 2010, the raw materials structure of methanol was adjusted slightly, with an increase in coal-based methanol capacity, a decrease in natural gas-based methanol capacity and a fast growth in coke oven gas-based methanol capacity. About 40 percent of methanol is converted to formaldehyde, and into products as diverse as plastics, plywood, paints, explosives, and permanent press textiles. – SG
