Abu Dhabi: An integrated industrial complex for converting crude oil to chemicals (COTC) will come up at Yanbu on the west coast of Saudi Arabia, according to a statement by Saudi Aramco and Sabic on Thursday.
The announcement comes as Saudi Arabia puts emphasis on making the kingdom a key hub for global chemicals production.
“Consistent with the kingdom’s Vision 2030 economic transformation programme, this project will support the creation of a world-leading downstream sector in Saudi Arabia,” the statement said.
The industrial complex is expected to start operations in 2025 and will process 400,000 barrels per day of crude oil to produce approximately 9 million tonnes of chemicals and base oils annually.
The complex will also create an estimated 30,000 direct and indirect jobs have and will have 1.5 per cent impact on the kingdom’s Gross Domestic Product (GDP), with investments being shared equally by both companies.
“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 maximising value across the entire hydrocarbons chain,” the statement added.
The Saudi Arabian government owns 70 per cent of Sabic and the remaining 30 per cent is publicly traded on the Saudi stock exchange.