Communicator

Saudi Arabia, 27 Feb 2025 - Saudi International Petrochemical Company (Sipchem) and global chemical giant LyondellBasell have announced a significant partnership to explore the development of a world-scale mixed-feed cracker in Saudi Arabia, bolstered by their successful securing of feedstock allocation from the Saudi government.

The two companies have signed a memorandum of understanding (MoU) to conduct a joint feasibility study for the proposed facility, which would utilize both ethane and refinery off-gases as feedstock. This mixed-feed approach offers greater flexibility in raw material sourcing while potentially improving the economics of the operation.

The proposed cracker would be integrated with downstream units to produce a range of high-value petrochemical products, including polyethylene, polypropylene, and various specialty chemicals. Industry analysts estimate the total investment could exceed $5 billion, though the companies have not confirmed specific figures pending the feasibility study's completion.

For LyondellBasell, the partnership represents a strategic move to expand its presence in the Middle East, a region that offers competitive feedstock advantages and growing domestic markets. The company has been actively restructuring its global portfolio, seeking opportunities in regions with favorable economics while potentially divesting from higher-cost locations.

The Saudi government has strongly supported the development of domestic petrochemical capacity through initiatives like Vision 2030, which aims to reduce the country's dependence on crude oil exports by developing downstream industries, aligning with national priorities to capture more value from the country's natural resources.

If the feasibility study yields positive results, construction could begin as early as 2026, with production potentially starting by 2029. The facility would likely be located in Jubail Industrial City, where Sipchem already operates several petrochemical plants and where existing infrastructure could support the new development.

The project faces competition from similar large-scale petrochemical developments in the region, including those being pursued by Saudi Aramco and SABIC. However, industry experts believe growing global demand for petrochemical products, particularly in emerging Asian markets, provides room for multiple new facilities.

The announcement comes as part of a broader wave of petrochemical investments in Saudi Arabia and the wider Gulf region, as producers seek to capitalize on competitive feedstock costs while meeting growing global demand for plastics and other petrochemical derivatives.

#aramco  #sabic  #sipchem  #lyondellbasell  #steamcracker  #ethane  #rog  #polyethylene  #polypropylene  #saudirabia 

8/2/2023 9:45:00 AM | Hydrocarbon Processing

INEOS has completed the formation of a 50/50 joint venture with SINOPEC for the Tianjin Nangang Ethylene Project, announced in December 2022, which is currently under construction by SINOPEC and expected to be on-stream by April 2024.

The petrochemical complex includes a 1.2 mtpa cracker, a new 500ktpa High-Density Polyethylene plant to produce INEOS pipe grade under license and 11 other derivative units.

The completion of the agreement today marks the continued progression of the significant petrochemical deals announced by the parties in July and December last year, and highlights the close relationship and growing collaboration between SINOPEC and INEOS.

#ineos  #sinopec  #tianjin  #sipc  #binhai  #nangang  #hdpe  #ethylene  #steamcracker  #ethyleneplant