28 June 2016
DETAILS
Saudi Aramco and
Saudi Arabian Basic Industries Corporation (SABIC)
have signed 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.
This will create a fully integrated petrochemical complex
which maximizes chemical yield, transforms
and recycles by-products, dr0ives efficiencies of scale
and resource optimization and
diversifies the petrochemical feedstock mix
in the Kingdom.
Consistent with
the Kingdom of Saudi Arabia Vision 2030 goals,
this project will provide new opportunities toward
creating a world leading downstream sector
in Saudi Arabia, built on four key drivers:
* maximizing 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.
Amin H. Nasser
Saudi Aramco president and CEO
“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 optimizing 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.”
Yousef Abdullah Al-Benyan
SABIC vice chairman and CEO
“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.”
WWW.CHEMWINFO.COM BY KHUN PHICHAI
