Gulf Cooperation Council (GCC) states are a major exporting region for nitrogenous fertilizers, accounting for 16 % of the world's nitrogen exports and 18 % of the world's sulphur exports, according to recent statistics.
It is these figures that have prompted the Gulf Petrochemicals and Chemicals Association (GPCA), in conjunction with British Sulphur Events, to organize the GPCA Fertilizer Convention, which takes place from 28-30 September at the Intercontinental Dubai Festival City Hotel. This event will bring senior executives from major fertilizer companies in the GCC and around the world to discuss the supply and demand dynamics of the fertilizer industry and the challenges of providing global food security.
With the combination of population growth and the diminishing availability of arable land, the role of nitrogenous fertilizers, in the production of food will remain crucial. The UN's Food and Agriculture Organization has predicted that food production will need to increase by 70% to feed an additional 2.3 billion people by 2050. The world fertilizer industry, along with others in the food production supply chain is working hard to meet this target and the GCC fertilizer producers will play a very important part.
"The GPCA is organizing this event to address the supply-demand balance and the role the GCC can play to meeting the future demand for fertilizer in global markets. The conference will bring together the regional industry leaders with their customers and service providers to discuss issues relevant to the fertilizer demand trends and recent technological production process advancement as well as highlighting optimal fertilizer application to ensure higher crop yields," said Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA.
With abundant low-cost natural gas and easy access to main shipping routes, the GCC states are ideally placed to produce nitrogen fertilizers for the world market. Today, 16% of the world's total nitrogen exports come from the GCC states as stated above. That share will not just be maintained in step with future increases in world nitrogen fertilizer output; it will actually increase.
Beginning in 2011, Saudi Arabia will be also be producing and exporting phosphates, adding another of the primary nutrients to GCC fertilizer exports arsenal. They will soon become the second largest exporter of DAP (di-ammonium phosphate) in the world after the USA. Saudi Arabia has the capacity of producing 2.9 million tonnes of DAP product which would represent 18% of the DAP export market.
There is another essential product that the GCC contributes to the fertilizer industry, which is the vital ingredient to the production of fertilizers: sulphur. A by-product of the oil and gas industry, sulphur is taken from the oil and gas for environmental reasons. Although sulphur is waste product for the hydrocarbon industry, sulphur is an essential building block to producing fertilizer and is in itself a secondary nutrient needed for plant growth. GCC states have an abundance of sulphur and export an estimated 6.2 million tonnes per year or 18% of the world total, and as oil and gas operations in the region expand, more will be produced.
The GCC states are ideally located to some of the largest importing nations, the largest being India, which alone last year accounted for 20% of the world's total nutrient trade. South Asia is the largest export market for GCC nitrogen products, followed by South East Asia, North America, Africa and Oceania.
At the GPCA Fertilizer Convention, industry analysts and expert speakers from production companies and major contractors serving the fertilizer industry will present their perspectives on key fertilizer markets, production and technology, providing participants with a clear view of the fertilizer market and the challenges and opportunities of addressing long-term demand.
