Aramco, SABIC eye crude-oil-to-chemicals plant
Saudi Aramco and SABIC have signed a heads of agreement to conduct a feasibility study on the development of a crude oil-to-chemicals complex in Saudi Arabia
Saudi Aramco and Saudi Arabian Basic Industries Corporation (SABIC) are looking into the possibility of developing a crude oil-to-chemicals plant in Saudi Arabia.
The companies have signed a heads of agreement to conduct a feasibility study on the development of such a facility.
The agreement also contains key principles of cooperation that will form the basis of a joint venture (JV) between the firms, should the joint study reach a positive conclusion.
Amin H Nasser, president and chief executive officer of Saudi Aramco, said: “Our agreement with SABIC reflects our vision to build on Saudi Arabia’s global leadership in crude oil production and commodities export by substantially increasing the production of oil-based petrochemicals and further optimising value across the entire hydrocarbons chain.
“This agreement will help spur a new era of industrial diversification, job creation, and technology development in Saudi Arabia, particularly through downstream conversion of speciality chemicals by small- and medium-sized enterprises (SMEs).”
The stakeholders plan to create a fully integrated petrochemical complex, which maximises chemical yield, transforms and recycles by-products, drives efficiencies and scale and resource optimisation, and diversifies the petrochemical feedstock mix in Saudi Arabia.
Commenting on the aims of the partnership, Yousef Abdullah Al-Benyan, vice chairman and CEO of SABIC, said: “We are hopeful that our agreement to conduct a joint feasibility study on the development of an integrated crude oil-to-chemicals complex in Saudi Arabia will ultimately lead to a new era for the kingdom, driving strong economic growth, creating many new opportunities for aspiring young Saudis, and playing a significant role in the kingdom’s economic transformation.”\