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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 SABIC have signed a heads of agreement to conduct a feasibility study on the development of a crude oil-to-chemicals plant in the kingdom.
Saudi Aramco and SABIC have signed a heads of agreement to conduct a feasibility study on the development of a crude oil-to-chemicals plant in the kingdom.

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.”\

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Construction Week - Issue 747
Aug 03, 2019