DHAHRAN, Saudi Arabia
Saudi Aramco and SABIC announce Yanbu as the site for the development of an integrated industrial complex to convert crude oil to chemicals
Dhahran; November 1, 2018 -- Saudi Aramco and SABIC have announced their selection of Yanbu, on the west coast of Saudi Arabia, as the site for the development of an integrated industrial complex to convert crude oil to chemicals (COTC).
The announcement by Saudi Aramco and SABIC, the two largest industrial entities in the Kingdom, reflects the high importance both companies place on making the Kingdom a key hub for global chemicals production. The complex will utilize an economically viable, innovative configuration to convert crude oil to chemicals. This process is unprecedented in the industry.
The COTC complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of chemicals and base oils annually and is expected to start operations in 2025.
The complex is expected to create an estimated 30,000 direct and indirect jobs, further stimulating the Kingdom’s economic diversification efforts. By 2030 the COTC complex is expected to have 1.5% impact on the Kingdom’s Gross Domestic Product (GDP), with investments being shared equally by both companies.
Consistent with the Kingdom’s Vision 2030 economic transformation program, this project will support 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 integration across the hydrocarbon chain; enabling the creation of conversion industries to produce semi-finished and finished goods to help diversify the economy; developing advanced technologies and innovation; and enabling sustainable development in alignment with the Kingdom’s National Transformation Program.
The announcement strengthens the alliance between the two largest Saudi global entities and solidifies the Kingdom’s position as a global leader in chemicals by substantially increasing production and maximizing value across the entire hydrocarbons chain.
Earlier this year, Saudi Aramco and SABIC awarded the Project Management and Front End Engineering to Wood and KBR. The Partners are working on finalizing the selection of Leading Edge Technologies to complement their technologies.
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About Saudi Aramco
Saudi Aramco is a leading global integrated energy and chemicals company. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, more sustainable and more useful. This helps promote stability and long-term growth around the world. www.saudiaramco.com
SABIC is a global leader in diversified chemicals headquartered in Riyadh, Saudi Arabia. We manufacture on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals.
We support our customers by identifying and developing opportunities in key end markets such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation and clean energy.
SABIC has more than 34,000 employees worldwide and operates in more than 50 countries. Fostering innovation and a spirit of ingenuity, we have 11,534 global patent filings, and have significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South Asia and North Asia.
The Saudi Arabian government owns 70 percent of SABIC shares with the remaining 30 percent publicly traded on the Saudi stock exchange.