MUSCAT: The Special Economic Zone at Duqm (SEZAD) will examine the changing economics of the petrochemicals sector at its upcoming Duqm Now session, on December 10, at the Crowne Plaza Hotel Duqm offering business leaders a clear view of how the industry is developing across global markets and what that means for Al Duqm and Oman.
Petrochemicals seldom dominate energy debates yet they form the backbone of many industrial supply chains. The IEA estimates petrochemicals accounted for nearly 12% of global oil demand last year, a proportion that has continued to rise even as other segments of the energy system become more efficient. That global picture is mirrored on the production side, where capacity additions have altered competitive dynamics, new ethylene capacity in the US and China now represents more than half of global expansion, influencing costs, trade flows and investment decisions in other regions.
At the same time, producers are rethinking how they operate, not just where they produce. Higher energy input costs in parts of Europe have put additional pressure on margins. Circularity, once treated as a long-range aspiration now features in near-term planning as companies test advanced recycling routes and alternative feedstocks that may offer more resilient cost structures or improved regulatory compliance. These developments are informing decisions on capital allocation, long-term contracts and supply-chain design.
All of this matters because the consequences do not stay within the petrochemicals sector. For manufacturers and investors, the direction of the industry matters because petrochemicals underpin so many goods, from insulation and packaging to medical devices, car interiors and wind-turbine blades. Global demand for plastics, a major petrochemical product family, is projected by the OECD to more than double by 2060, pointing to the long-term importance of the sector. As costs, capacity and technology continue to develop, companies with links to regional or international supply chains need a clear view of what lies ahead.
That broader relevance is why SEZAD sees value in taking a clearer look at where the industry is heading. Eng Ahmed Akaak, CEO, SEZAD said the discussion comes at a time when the petrochemicals landscape is being reshaped from several directions. “Petrochemicals are being pulled by energy markets, pushed by new technologies and increasingly judged through the lens of sustainability. With fresh capacity changing cost structures and trade flows, producers have choices to make. December’s Duqm Now session will help us understand those pressures and think through what they mean for industrial growth in Al Duqm and across Oman”.
The December 10 event is designed to bring those questions into focus — bringing together analysts, industry specialists and policymakers to look beyond the headlines and focus on what they mean in practice, from investment decisions to supply-chain design. Their insights will help frame how producers, investors and downstream industries navigate a decade in which costs, capacity and competitiveness are all moving targets.
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