Manufacturing facilities for corrosion inhibitors

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Overview

This opportunity entails localizing the entire value chain for water corrosion inhibitors and oil & gas corrosion inhibitors to serve the KSA and Middle Eastern markets.

Corrosion inhibitors are important production chemicals, constituting ~20% of a large Middle Eastern OFS market. Beyond oil field chemicals, corrosion inhibitors have applications in different industries such as water, power generation and processing.

Corrosion inhibitors consumption in KSA is expected to rise significantly over the next couple of years driven mainly by an increase in applications in oil and gas, metal processing and water treatment.

The overall demand for corrosion inhibitors in KSA is expected to increase from 17 KTPA in 2018 to 21 KTPA in 2025.

  • Water corrosion inhibitors: Local consumption is expected to increase from 7 KTPA in 2018 to 8 KTPA in 2025, leading to an increase in the market size from 36 M USD in 2018 to 45 M USD in 2025.
  • Oil and gas corrosion inhibitors: Local consumption is expected to increase from 10 KTPA in 2018 to 13 KTPA in 2025, leading to an increase in the market size from 47 M USD in 2018 to 75 M USD in 2025.

In addition, ethylene oxide and propylene oxide are key raw material for several synthesis products necessary for corrosion inhibitors and are readily available in KSA.

Beyond the KSA market, private sector players have the opportunity to tap into a big Middle Eastern market that is expected to increase from 29 KTPA in 2018 to 41 KTPA in 2025, leading to an increase in the market size from 209 M USD in 2018 to 320 M USD in 2025.

The increase in demand for corrosion inhibitors 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 manufacturing facilities for water and oil & gas corrosion inhibitors in Saudi Arabia.

Beyond the local manufacturing of inhibitors, other opportunities exist across the value chain including:

  • Establishing production facilities for key synthesis products (e.g., copolymers, phosphonates and amidoamines)
  • Providing logistics and transportation (iso containers, flatbed trailers and trucks) as well as testing & certification (CBM, testing and inspection) services

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

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