New Saudi oil-to-chemicals complex to come up at Yanbu

Industrial facility to process 400,000 bpd of crude to produce 9m tonnes of chemicals and base oils annually

An integrated industrial complex for converting crude oil to chemicals will come up at Yanbu, on the west coast of Saudi Arabia, a statement by Saudi Aramco and Sabic said on Thursday.

The announcement comes as Saudi Arabia puts emphasis on making the kingdom a key hub for global chemicals production.

“Consistent with the kingdom’s Vision 2030 economic transformation programme, this project will support the creation of a world-leading downstream sector in Saudi Arabia,” the statement said.

The industrial complex is expected to start operations in 2025 and will process 400,000 barrels per day of crude oil to produce approximately 9 million tonnes of chemicals and base oils annually.

The complex will also create an estimated 30,000 direct and indirect jobs have and will have 1.5 per cent impact on the kingdom’s gross domestic product, with investments being shared equally by both companies.

The Saudi government owns 70 per cent of Sabic and the remaining 30 per cent is publicly traded on the Saudi stock exchange.