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Opportunities and challenges of Venezuelan chemical development

Abstract:

The chemical industry is one of the most important worldwide with total sales around 1350 US billion dollars in 1999, and customers from agriculture to electronics, playing an important role on the petroleum industry. Latin America accounts only for a 4% of the total business, and is a net importer of chemical/petrochemical products. Giving this situation and the Venezuelan relative strength in raw materials, the opportunities for a larger participation of that market were explored, while thrusting a major chemical development in the country. Accordingly, a methodology to establish a strategic vision of sustained development was developed, considering the business opportunities from the commercial unbalance of the region, and the integration of the chemical business to oil sector. The aim was to foster the growth of downstream segments in the short and mid terms, and to promote an integral and sustained development in the national chemical and petrochemical industry, in the long run. Two potential petrochemical centers in Venezuela: Paraguaná and Jose to be developed in the short term, were identified, taking advantage of synergies such as abundant raw materials, industrial services, import/export infrastructure, etc., to produce basic chemicals and intermediates based upon syngas and short chain olefins. To accomplish a major chemical development in Venezuela, requires the highest priority by the government and the coalition of the local industry, PDVSA, the government and support institutions. A set of recommendations was given to the government to dictate Laws and Estate policies in order to promote and facilitate investment in this important area.