Nexant Sees Bright Future For African Petrochemical Sector
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--As the petrochemical industry intensifies its global search for new chemical feedstock sources, a growing number of companies are looking closely at Africa's largely underdeveloped and potentially vast hydrocarbon and mineral resources as an alternative source of supply.
In a soon-to-be-initiated study—The African Petrochemical and Fertilizer Industry: Discovering a New Oasis?—Nexant, the global energy and petrochemicals consulting firm, will analyze fundamental issues that face these industries as they gear up to address strong demand growth in the African continent. For example, ethylene demand is expected to roughly triple by 2025 as a result of a demand growth rate that is about twice the global average. In fertilizers, the typical African farmer uses about one-tenth of the amount of fertilizer per acre that a typical U.S. farmer uses, offering considerable room for increased fertilizer demand. However, the question remains: how will this increased demand be met?
Until now, Africa's relative isolation, underdeveloped local end-use markets, poverty, and political strife have dampened development of the continent's chemical and fertilizer industries. However, as investment in the region grows, the outlook for future development of a robust African chemical industry is improving. Production costs in the Middle East and other regions are escalating appreciably, making Africa a potentially attractive opportunity.
For more information on this study and Nexant's other regional outlook reports, please contact James Virosco at +1 914 609 0318 or by email: jvirosco@nexant.com.
ABOUT NEXANT
Nexant is a premier provider of petrochemical, oil, gas, clean coal, biofuel, renewable energy, and intelligent grid solutions—developing and delivering strategic, technical, economic, financial, and master planning consulting services to chemical and petroleum majors, Fortune 500 companies, utilities, transmission and distribution system operators, financial institutions, government agencies, and development banks. Nexant® is a proprietary trademark of Nexant, Inc. For more information on Nexant, please visit www.nexant.com or contact: Bob Burdett, +1-415-369-1114
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