Saudi Aramco/Sabic tie-up for feasibility study on chemicals complex in Saudi Arabia
Saudi Aramco and Saudi Arabian Basic Industries Corporation (Sabic) have signed a heads of agreement to conduct a feasibility study on the development of a fully integrated crude oil-to-chemicals complex to be located in Saudi Arabia. The heads of agreement contains key principles of cooperation that will form the basis for the companies to establish a joint venture, if the joint study reaches a positive conclusion.
Derived from improved refining technology, the crude oil-to-chemicals process will involve innovative configurations with proven conversion technologies, say the companies. This will create a fully integrated petrochemical complex which maximises chemical yield, transforms and recycles by-products, drives efficiencies of scale and resource optimisation and diversifies the petrochemical feedstock mix in Saudi Arabia.
Saudi Aramco President/CEO, Amin H. Nasser 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 specialty chemicals by small and medium sized enterprises.”
Sabic Vice-Chairman/CEO, Yousef Abdullah Al-Benyan said: “By working together to deliver Chemistry that Matters, Sabic and Saudi Aramco can drive advances that will diversify the Kingdom’s feedstock mix and make oil a viable petrochemical feedstock. 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.”
Consistent with Saudi Arabia’s Vision 2030 goals, this project will provide new opportunities toward creating a world leading downstream sector in Saudi Arabia, built on four key drivers: maximising value from the Kingdom’s crude oil production via vertical and horizontal integration across the hydrocarbon chain; enabling the creation of conversion industries that produce semi-finished and finished goods to help diversify the economy; developing advanced technologies and innovation; and, enabling the Kingdom’s sustainable development in alignment with the Kingdom’s National Transformation Program.