The escalating conflict in the Middle East is threatening a major polymer export hub, as debris from an aerial interception sparked a fire at one of the berths at the port of Jabel Ali in the UAE.
The port handles approximately 65pc of the Gulf Cooperation Council's (GCC) polymer exports and 33pc of its total petrochemical exports, according to port owner and operator DP World.
The Dubai Media Office, in a social media post, confirmed debris caused a fire at one of the port's berths after the US military began "major combat operations" in Iran following coordinated Israeli strikes on 28 February. Dubai Civil Defense teams responded to the fire, which caused no injuries.
The Middle East has more than 23mn metric tonnes (t)/yr of polyethylene capacity, accounting for about 15pc of global capacity, according to Argus data. Saudi Arabia accounts for 10.5mn t of Middle East capacity, including 7.3mn t at the Jubail plant. Iran has just over 5mn t of polyethylene capacity.
The Middle East also has more than 10mn t/y of polypropylene capacity, accounting for about 9pc of global capacity, according to Argus data. Saudi Arabia is the largest producer in the region, with 5.7mn t/y capacity, including 4mn t/y at Jubail. Iran has 1.2mn t of polypropylene capacity.
Other ports in the region, including in Oman and Kuwait, also have been struck during the conflict. Oman's Duqm port was hit by two drones, injuring one worker, state-owned news agency Ona said Sunday. In Kuwait, operations at Shuaiba port were suspended on Saturday as a precaution after debris from an unidentified aerial object fell nearby.
All petrochemical exports from the region could be disrupted after initial reports that the strait of Hormuz has been closed. The UK Maritime Trade Operations agency on Saturday said broadcasts or statements indicating closure are not legally binding and it advised vessels to transit with caution.
