29

The recovery of the Spanish economy together with the drop in Brent prices has led to a turnaround in demand for

petroleum products, with an increase in fuel consumption at end-user level.

DISTRIBUTION AND MARKETING

CURRENT SITUATION

2016-2020 OUTLOOK Improved growth prospects in Spain (2.6% growth in GDP) points towards a slight re-

covery in future demand (1.5% compound annual growth CAGR- to 2020).

Demand 2010 · 2015

Forecast 2015 · 2020

Diesel -1.4%

Gasoline -3.8%

Fuel -4.9%

Kerosene +0.4%

LPG -5.4%

Asphalts +11.3%

PETROCHEMICALS

The fall in oil prices is also having a significant impact on the chemicals market worldwide. Chemicals com- panies established in Europe have im- proved margins due to lower energy prices, while oil prices are jeopardi- sing gas-based chemical plants in the United States. This situation is leading

to deferrals and cancellations of new investment decisions in the industry.

The phenol production overcapacity currently existing in the Chinese mar- ket should be noted, where demand is also shrinking as a result of the coun- try s economic slowdown.

CURRENT SITUATION

2016-2020 OUTLOOK Following the strong growth in phenol capacity in China (+261% in 6 years), oversupply is expected to continue in the market for the next 2-3 years, pu- tting pressure on profit margins.

Conversely, a higher global growth in alcohol surfactants is expected (5.2%), compared to a 0.9% in linear alkyl ben- zene (LAB) until 2020.

ANNUAL AND CORPORATE RESPONSIBILITY REPORT 2015