Tasnee CEO says changed approach to market in last 2 years; petrochemicals key driver for oil demand

Mutlaq Al-Morished, CEO of Tasnee

National Industrialization Co. (Tasnee) CEO, Mutlaq Al-Morished, said that the company has worked to change its approach towards the market over the past two years.

This includes boosting its local presence in the key markets as well as close alignment and coordination with the various distribution channels around the world, Al-Morished noted.

In a meeting with the Gulf Petrochemicals and Chemicals Association (GPCA), the CEO said one of the main success factors in the company’s transformation over the period 2015-2020 was a comprehensive cost reduction.

“The company maintained its cost discipline over the past years, which helped it overcome on the COVID-19 crisis,” he said.

Before the pandemic, demand for jet fuel and petrochemicals was expected to grow. However, amid unclear vision of the aviation sector, petrochemicals is now a major driver of oil demand in the next decade.

Al-Morished said oil companies and GCC countries are expected to show greater interest in the petrochemical projects that are based on liquid feedstocks. He noted that the liquid feedstock pricing mechanisms in the GCC have not been attractive so far.

"With the advancement of new technologies and oil peak on the horizon, we might see more projects based on liquid feedstocks in the coming years," he noted.

Major petrochemical companies, which carry out long-term transformative investments through top-notch technologies, might show interest in the investment of green and blue hydrogen as well as ammonia projects, although the current economics do not seem attractive for such projects.

Al-Morished concluded that it is still not clear whether these projects are better suited to chemical or energy companies.