Facilities for production chemicals

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Overview

This opportunity entails localizing the entire value chain for production chemicals to serve the KSA and Middle Eastern markets.

Production chemicals include: Water clarifiers, Formaldehyde free biocides, Scale inhibitors, H2S Scavenger, Paraffin inhibitors, Gas Well Foamers, etc...

Production chemicals consumption in KSA and the Middle East is expected to increase significantly over the next couple of years driven mainly by the growing drilling fluids market.

The overall market size for production chemicals in the Middle East is expected to increase from 57,000 tons in 2018 to 103,000 tons in 2030.

  • KSA market: Local consumption is expected to increase from 20,000 tons in 2018 to 33,000 tons in 2030.
  • Rest of the Middle East: Local consumption is expected to increase from 37,000 tons in 2018 to 70,000 tons in 2030.

The increase in local and regional demand for production chemicals and the limited presence of local players coupled with the Governments push for localization presents a great opportunity for the private sector to invest in establishing facilities for production chemicals in Saudi Arabia.

Beyond the facilities for production chemicals, other opportunities exist across the value chain including:

  • Establishing production facilities for key input materials (e.g., polyacrylates and non ionic surfactant)
  • Providing handling services (e.g., drums and iso containers)
  • Providing transportation and loading services (e.g., flatbed trailers and manifold trailers)

 

Opportunity Details

Chemicals
Sector
To be determined by the investor
Location
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Investment size
Open to starting the project as soon as possible
Timeline

Investment Model

Model: Opportunity to consider different operating models
  • Pure private sector model
  • Joint venture with local player

Contact Our Facilities for production chemicals Expert

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