Saudi Aramco, Sabic select Yanbu as industrial complex site
Wood and KBR have won contracts for the facility that is scheduled to open in 2025
Saudi Aramco and Sabic, two of the largest companies in Saudi Arabia, have picked Yanbu as the site for an industrial complex that will create 30,000 new jobs.
It has yet to be revealed why the port city of Yanbu, located on Saudi Arabia's west coast, was picked as the place to build the massive facility, which will convert crude oil to chemicals (COTC).
No date for start of construction has been made public yet, but the COTC complex that will process 400,000 barrels of crude oil per day, will start operations in 2025. Wood and KBR have already won the respective project management and front-end engineering contracts for the COTC facility.
Sabic and Saudi Aramco announced plans to develop the complex in November 2017, when the duo confirmed it would produce more than eight million tonnes of chemicals and base oils from the crude oil processed at the plant.
Saudi Aramco and Sabic claim the COTC complex will contribute up to 1.5% toward the kingdom's gross domestic product by 2030, strengthing the Saudi government's vision for industrial modernisation by diversifying the economy.
It will also support the kingdom's Vision 2030 initiative by creating a competitive downstream sector in Saudi Arabia that could help it maximise oil production value through closer integration across the hydrocarbon chain.
In a joint statement, Saudi Aramco and Sabic said the announcement reinforced their partnership and strengthened the kingdom's “position as a global leader in chemicals” by boosting production and maximising hydrocarbon value.