Saudi Aramco and SABIC to conduct feasibility study for oil-to-chemicals complex
Saudi Aramco and Saudi Arabian Basic Industries Corporation (SABIC) have entered a heads of agreement (HoA) to conduct a feasibility study to develop a crude oil-to-chemicals complex in Saudi Arabia.
If the study reaches a positive conclusion, the agreement will help the companies establish a joint venture.
Using improved refining technology, the crude oil-to-chemicals process would feature new configurations with established conversion technologies.
This process will help in building an integrated petrochemical complex, which would increase chemical yield as well as help in recycling by-products and diversifies the petrochemical feedstock mix in the Kingdom of Saudi Arabia.
Saudi Aramco president and CEO Amin 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."
The project is consistent with the Kingdom of Saudi Arabia Vision 2030 goals, and is expected to provide new opportunities to create a leading downstream sector in Saudi Arabia.
SABIC vice-chairman and 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."
Image: Saudi Aramco and SABIC signed the heads of agreement for the oil-to-chemicals feasibility study in Dhahran. Photo: courtesy of Saudi Arabian Oil Co.