Saudi Aramco and SABIC choose Yanbu as an industrial complex

Saudi Aramco and Saudi Basic Industries Corporation (SABIC) have announced that they have chosen Yanbu to establish their integrated and innovative industrial complex to convert crude oil into chemicals.

This announcement follows localization studies that led to the selection of Yanbu, on the Red Sea coast in western Saudi Arabia, as a project incubator, a major step between the two. Saudi Arabian industry poles to launch a new era in the petrochemical industry.

The two companies signed this agreement two years ago: the complex will operate using innovative technologies to convert crude oil into chemicals in the UK, which is important not only for cooperation and investment of 50% between the two largest Saudi companies, globally in the chemical industry.

The complex will feature innovative operating units that will enable it to achieve an unprecedented conversion rate of petroleum into chemicals, both competitive and economical, which is a success story for the entire industry.

During the first half of the year, Saudi Aramco and SABIC established two management and project execution contracts for Wood and KBR. Both partners are finalizing the selection of appropriate technologies compatible with the existing technologies of both companies.

The giant project is expected to consume 400,000 barrels of crude oil a day to produce about 9 million tonnes of chemicals a year. The construction works should begin in 2025, a project towards the kingdom that aims to achieve its vision 2030.

The new technology used in the project, developed in the Kingdom, will include an unprecedented conversion rate of oil into chemicals in the global industry.

The conversion ratio is deemed to balance the economic and technical aspects, for example, giving the highest total return on investment and exploiting the maximum production capacity available in the world.

The project will offer new opportunities to build the Kingdom's main manufacturing industries in four areas: increase the value of crude oil production in the Kingdom through full integration into the hydrocarbon chain, contribute to economic diversification through production of ready-to-eat or semi-ready materials, and to match the Kingdom's sustainable economic growth with the national transformation agenda, the project will generate about 30,000 direct and indirect jobs for Saudi youth.

By 2030, it is expected to become one of the most important projects contributing to the Kingdom 's GDP, contributing 1.5% of GDP to the Kingdom by 2030 and playing a pivotal role in support for efforts to achieve economic diversification and transformation of petroleum exports Develop high-value industrial products.

The project is expected to support efforts to develop a more diversified refining, processing and marketing sector in the Kingdom. The project, which confirms to both partners that it will be the world's largest oil conversion facility into chemicals and the first of its kind in the Kingdom, fits into the government's efforts Saudi to diversify its economy beyond the dependence on oil exports.

The crude compound will be processed at world prices for the production of polyethylene, polypropylene, zeolene, benzene and other products.

This decision comes at a time when Saudi Aramco is considering taking a stake in SABIC. Aramco's Managing Director, Amin Al-Nasser, told Al Hayat that the information gathered by Aramco on the acquisition of SABIC was related to 'acquisition. With investments at home and abroad, experts should consider considering the acquisition, indicating that the joint venture with SABIC in charge of converting crude oil into petrochemicals is proceeding according to plan.

SABIC President Abdulaziz Al Jarboo has expressed confidence in the joint venture with Aramco to develop a $ 20 billion integrated industrial complex in Saudi Arabia.