According to the oil and gas news website on May 18, Saudi Aramco and Saudi Basic Industries Corporation (Sabic) are advancing plans to build large petrochemical companies in Yanbu, which shows that they are committed to achieving the long-term goal of expanding Saudi Arabia's downstream sector
The project planning carried out by Saudi Aramco and Saudi Basic Industries Corporation also reflects their attention to the cost-intensive nature of the construction of a crude oil chemical (COTC) project
GlobalData Energy and Technology Editor Indrajit Sen commented: "The downstream project planned by Saudi Aramco/Saudi Basic Industries in Yanbu is hailed as the first such petrochemical project in the Middle East and one of the few such projects in the world.
"The change in the demand outlook for petrochemical products is also considered a factor for project operators.
Adhering to the original plan to build a large-scale COTC complex is still an option for partners.
Indrajit Sen said: “Part of this alternative plan is to build a greenfield petrochemical plant in Yanbu close to the Yasref refinery to gain a raw material advantage
Wang Lei, translated from Oil & Gas News
The original text is as follows:
Saudi Arabia committed to Yanbu chemicals project
Saudi Aramco and Saudi Basic Industries Corporation (Sabic) are moving forward with their plans of building a mega petrochemicals complex in Yanbu.
How the Aramco/Sabic joijt venture (JV) is proceeding with the project planning also reflects that they are mindful of the cost-intensive nature of building a crude oil-to-chemicals (COTC) project.
Indrajit Sen, Energy & Technology Editor at GlobalData, comments: “The Aramco/Sabic planned downstream project in Yanbu has been touted as being the first oil-to-chemicals scheme of its type in the Middle East, and one of the few of its kind in the world.
"The shifting dynamics of petrochemicals demand outlook has also said to have been a factor for the project operators, with the Aramco/Sabic JV reportedly considering revising down the planned petrochemicals output capacity of 9 million tonnes a year.
Sticking to the original plan of building a mega COTC complex remains an option for the partners, and Aramco/Sabic are considering the alternate, cost-efficient approach of building an integrated refining and petrochemicals project in Yanbu, and even roped in Wood Group as a consultant.
Sen continues: “Part of this alternative plan is building the greenfield petrochemicals plant in close proximity to the Yasref refinery in Yanbu for feedstock advantage.