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SABIC and Aramco plan crude into petrochemicals projects

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Saudi energy minister Prince Abdulaziz said the project will have a capacity of 400,000 barrels of crude per day

Saudi Basic Industries Corporation (SABIC) and Saudi Aramco are planning a joint project to convert crude into petrochemicals in Ras Al Khair, Reuters reported, citing energy minister Prince Abdulaziz bin Salman.

The project, which will be the first of its kind in Saudi Arabia, will be completed in the coming years and have a capacity of 400,000 barrels of crude per day, the minister stated.

Speaking at the opening of the SABIC building in Al Jubail, Prince Abdulaziz said the kingdom plans to open a new port in the industrial city of Ras Al Khair to export petrochemicals.

The Saudi-listed company completed its purchase of a 70 percent stake in SABIC for $69.1 billion In June 2020.

The oil major recently announced plans to develop one of the world’s largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate in South Korea. The $7 billion “Shaheen” project aims to convert crude oil into petrochemical feedstock.

Aramco reported a nearly 39 percent jump year-on-year in Q3 2022 net profit at $42.4 billion on higher oil prices and increased sales volumes as it plans to expand long-term production capabilities and develop low-carbon solutions.