Future bright for India's petrochemicals as industry adjusts to challenges, says Shell India chairman
Mar 6, 2009
"India's petrochemicals sector looks set to become a major global force over the longer term," Vikram Mehta, chairman of Shell India has told the Indian Plastics Federation.
However, it will need to overcome short-term economic difficulties and the longer term energy challenge of securing more energy while reducing carbon dioxide emissions to protect the environment.
India's petrochemical sector has been growing fast, the Shell India chairman noted. "For the past ten years, domestic demand growth has been strong, driven mainly by consumption of polymers and synthetic fibres, which has prompted a wave of planned investment in new capacity.
"A major driver for future growth is India's economic development program, which includes over $500-billion for infrastructure investment. India's consumers have apparently also been buying 2,500 cars, 5,200 washing machines and almost 20 million bottles of water every day," he said.
Government petrochemical policies in India are certainly focused on supporting demand and production growth. Good examples are the Petroleum, Chemicals & Petrochemical Investment Regions (PCPIRs), which are to be set up to promote investment and make India a petrochemical hub. But while clustered, integrated investments make both economic and environmental sense, the timing of new projects will be important to their profitability, the Shell executive suggested.
To meet its development goals, India will need a greatly expanded energy infrastructure, Mr Mehta noted. At the same time, the world faces a challenge of securing more energy while reducing carbon dioxide emissions to prevent catastrophic climate change.
India's petrochemicals sector - as part of a global sector - can play a key role in meeting that challenge, he suggested: Greater energy efficiency, carbon capture and storage, new feedstock sources - including clean coal and bio feeds - and a new generation of products and production technologies could hold the key. Certainly, India has the intellectual and creative capacity, and petrochemicals will need to compete effectively for that talent, he concluded.
For further information, please contact:
Tel: +44 207 934 4506
Notes to Editors
Shell companies have their own separate identities but we may sometimes use "Shell", "Group, "we" or "us" when we refer to Shell companies in general or where no useful purpose is served by identifying any particular Shell company.
Shell Chemicals collectively refers to the companies of the Shell Group engaged in the chemicals business. Shell chemicals companies manufacture and deliver petrochemical building blocks and polyolefins to industrial customers. These products are widely used in plastics, coatings and detergents. For further information please visit www.shell.com/chemicals/news.
This release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.
Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.
Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward-looking statements are identified by their use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases.
Also included as a forward looking statement is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, organic reserves, net reserves and resources. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation):
(a) price fluctuations in crude oil and natural gas;
(b) changes in demand for the Group's products;
(c) currency fluctuations;
(d) drilling and production results;
(e) reserve estimates;
(f) loss of market and industry competition;
(g) environmental and physical risks;
(h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions;
(i) the risk of doing business in developing countries and countries subject to international sanctions;
(j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves;
(k) economic and financial market conditions in various countries and regions;
(l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and
(m) changes in trading conditions.
All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell's 20-F for the year ended December 31, 2007 (available at www.shell.com/investor and www.sec.gov ).
These factors also should be considered by the reader. Each forward-looking statement speaks only as of December 9, 2008. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information.
In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this [presentation, report or speech].
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.
We use certain terms in this [presentation, report or speech] that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.