Saudi Arabia: Sabic and Aramco Sign Agreement Saudi Arabia Plans to Diversify Petrochemical Industry
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.
Riadh/Saudi Arabia – The agreement contains key principles of cooperation to form the basis for the companies to establish a joint venture, if the joint study reaches a positive conclusion.
The companies intend to use improved refining methods applying proven conversion technologies and plan on creating a fully integrated petrochemical complex.
The agreement is part of the Kingdom's plans to increase the production of oil-based petrochemicals and further optimizing value across the entire hydrocarbons chain. The "Kingdom of Saudi Arabia Vision 2030" goals include the creation of 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.