BMI's Executive Summary

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Industry Overview

As one of the largest oil and gas producers in the world, Venezuela holds immense potential to develop a thriving petrochemicals industry. The Venezuelan chemicals and petrochemicals industry currently comprises about 300 companies. The country enjoys a competitive advantage in olefins and derivatives, fertilisers and oxygenates. Most key sectors of the economy are currently state controlled. The government is carrying out a major nationalisation drive and has taken control of most privately run oil projects in the country. The major players in the domestic petrochemicals industry are: Petroleos de Venezuela (PdVSA), Petroquímica de Venezuela (Pequiven) and Propilven de Venezuela (Propilven).

Government Initiatives

The Venezuelan petrochemicals industry has been steadily evolving and continues to be in a restructuring phase. A new petrochemicals law, which is likely to be introduced for discussion before the close of 2007, could significantly alter the extent of private participation in the industry. The government hopes to increase investment and employment in the industry with the introduction of the new law.

Industry Developments

One of the largest petrochemicals projects on the anvil involves development of an integrated petrochemical facility at the Jose Petrochemicals Complex. The project will be jointly undertaken by Pequiven and Brazilian chemical giant Braskem. Total cost of the project, excluding the development of allied infrastructure in the region, is likely to be in the vicinity of US$2.8bn. In July 2007, Pequiven's new polyvinyl chloride (PVC) kits manufacturing plant was inaugurated in Carabobo. During the same month, plans were unveiled for the development of a new refinery-streams project at Centro Refinacion Paraguana. Plastics and resins that are currently not manufactured in the country will be produced at this facility. Further, Iran and Venezuela have entered into a pact for methanol production, under which at least one methanol plant will be constructed in each country.

Industry Forecast

Venezuela's President Hugo Chavez has outlined major plans for expansion of the country's petrochemicals industry. The plans envisage raising the industry's annual revenues to about US$100bn within the next five years, and the creation of nearly 700,000 jobs within the industry by 2013.

Contents

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Chapter 1 - Executive Summary

Industry Overview

Government Initiatives

Industry Developments

Industry Forecast

Chapter 2 - SWOT Analysis

Venezuela Petrochemicals Industry SWOT

Venezuela Economic SWOT

Venezuela Political SWOT

Venezuela Business Environment SWOT

Chapter 3 - Market Overview

Table: Key Petrochemical Production

Investment Barriers

Market Structure

Table: Listed Cracker Capacity – Venezuela Petrochemicals

Chapter 4 - Industry Trends and Developments

Government Initiatives

Company Developments

Business Environment

Chapter 5 - Industry Forecast Scenario

Table: Venezuela Petrochemicals Industry – Historical Data And Forecasts

Chapter 6 - Economic Outlook

Table: Economic Activity Indicators

Chapter 7 - Company Monitor

Profiles

Petroleós de Venezuela (PdVSA)

Petroquímica de Venezuela (Pequiven)

Propilven

SuperMetanol

Chapter 8 - BMI Forecast Modelling

How we generate our Industry Forecasts

Chemicals & Petrochemicals Industry

Cross Checks

Competitive Landscape for Latin America Petrochemicals Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by US$ sales, % market share, employee size, registration date and ownership structure. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) on all leading international and national operators in each market, including competitive intelligence in the following: Overall geographic presence, competitive positioning against local companies; production capacity, sales and market share; joint ventures, foreign direct investment, projects and acquisitions strategy.