Ras Tanura Integrated Petrochemical Complex, Saudi Arabia

During May 2007, Dow Chemical announced that it had signed a detailed memorandum of understanding with Saudi Aramco for the two companies to build, own and operate a joint-venture petrochemical complex in Ras Tanura, Saudi Arabia.

The petrochemical complex, which it is said will be the world's largest, will comprise 30 world-scale production plants. Investment costs were not disclosed but it is estimated that such a complex will cost in the region of $20bn.

Dow and Saudi Aramco will initially be 50:50 shareholders in the venture but at future date the project will available for an initial public offering (IPO).

PRODUCT SLATE

Units at the Ras Tanura plant will produce 4m tpa of upstream products including ethylene, propylene, aromatics and chlorine.

Downstream capacity, which is expected to be in excess of 7m tpa, will include polyethylene (PE), ethylene oxide (EO), ethylene glycol (EG), propylene oxide (PO), propylene glycol (PG), vinyl chloride monomer, polycarbonate and glycol ethers.

It is anticipated that the facilities will become operational during 2013.

FEEDSTOCK

The complex will be based on feedstock provided by Saudi Aramco's 550,000bbl/day Ras Tanura refinery along with natural gas from the company's gas processing facility in Ju'aymah, Saudi Arabia.

PROJECT MANAGEMENT CONTRACT

During July 2007 Dow Chemical and Saudi Aramco announced that it had awarded KBR the project management contract for the Ras Tanura Integrated Project. The value of the contract was not disclosed.

BACKGROUND

The Ras Tanura Integrated Project continues Saudi Arabia's push to monetise its natural resources. Once complete the site will be home to some 30 production plants along with 4,000 jobs. Saudi Aramco added that the output from the joint venture will spawn other downstream chemical conversion industries. Output from the complex will be aimed at the export market.