APLA 2016: Petrochemicals Leaders See Bright Future For Industry In 2025

The Latin American petrochemicals industry will be well-positioned in 2025 due to a range of projects for chemicals and feedstocks production in the region for the next decade, a panel of industry leaders said recently.

A push for investment in energy and infrastructure, market-oriented reforms within the region, and expectations for a restrengthening of economic growth all combine to place the petrochemicals industry on a strong trajectory for the next decade, panelists said at the 36th annual Latin American Petrochemical Meeting in Buenos Aires, Argentina.

Latin America will be on a strong growth path by that point, said Paloma Alonso, Latin America commercial vice president for packaging and specialty plastics for Dow Chemical. The consumption in regional markets and the infrastructure promises to be significantly improved by that point, she added.

"In 2025, we will be celebrating a brilliant renaissance of the region," Alonso said.

A series of energy projects in Brazil will be coming to completion around that time, and the country will continue its integration into the global economy with the worst of the economic troubles seemingly in the past, Braskem CEO Fernando Musa said.

"We will have more availability of gas and ethane," Musa said. "Brazil will have many value chains that it can enter due to the size of its markets."

Argentina has a "historic opportunity" in the space, YPF chemicals director Marcos Sabelli said.

"We will have the feedstocks and the market," Sabelli said. "We need to start developing at a competitive place compared to the rest of the world."

Mexico has optimism about growing production to reduce the country's deficits, said Patricio Gutierrez, president of the National Chemical Industry Association (ANIQ). Mexico has a $20 billion consumption deficit in chemicals, but that should be reduced by 30% by 2025.