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Saudi Jubail Welcomes Two More World-Class Petrochemical Cracking Projects, with a Total Capacity of 6.6 Million Tons

HuiZheng Information 2025-03-04 11:51:29

In February, the Saudi Ministry of Energy approved the feedstock supply plans for two world-class steam cracking and derivative projects located in Jubail, Saudi Arabia, with a potential total annual capacity of 6.6 million tons. Subsequently, the official project plans were announced.

One of the proposed petrochemical complexes is being overseen by Tasnee National Industrialization Co., which plans to produce 3.3 million tons of petrochemical products annually. On February 26, Tasnee stated that its goal is to start operations at this new complex in the fourth quarter of 2030.

Tasnee announced on February 26 that it had received approval from the Saudi Ministry of Energy for a certain amount of ethane, propane, and butane as feedstocks for constructing an "industrial complex including a world-class high-capacity ethylene production thermal cracking unit" in Jubail.

The company said that the planned products of the complex will include ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and methyl tert-butyl ether (MTBE). Other products to be produced in the region for the first time also include phthalate-free plasticizers, novel polyether polyols, and copolymers of ethylene oxide and propylene oxide for specific applications and specialty products, which "will contribute to increasing the added value of the Saudi petrochemical industry."

Another comprehensive project was announced on February 27 by Sahara International Petrochemical Co. (Sipchem) and LyondellBasell Industries NV. The two companies will form a joint venture to develop a complex with an annual capacity of 1.5 million tons of ethylene and 1.8 million tons of derivatives, including basic and specialty polymers. As of now, no expected start date for the project has been announced.

Sipchem and LyondellBasell issued separate statements on February 27, saying they had received approval from the Saudi Ministry of Energy on February 26 for the required feedstock quantities for their proposed joint petrochemical complex in Jubail. Both parties indicated that Sipchem would hold a 60% stake in the joint venture, while LyondellBasell would hold the remaining 40%. In a statement to the Saudi Stock Exchange, Sipchem stated that the complex would have an annual capacity of 1.5 million tons of ethylene and 1.8 million tons of derivatives, including basic and specialty polymers. The listed petrochemical producer intends to develop the complex in phases to maximize added value over the medium to long term.

Earlier, Saudi Aramco raised raw material prices for the second consecutive year on January 1. Following this, companies like Sipchem and Tasnee warned that this would lead to increased production costs. Multiple customer companies expected sales cost increases ranging between 1% and 3.7%. When the price increase was announced, Sipchem indicated that it anticipated its sales costs to rise by about 2% starting from the first quarter; Tasnee estimated that its subsidiaries and joint ventures would see an increase

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Saudi Jubail Welcomes Two More World-Class Petrochemical Cracking Projects, with a Total Capacity of 6.6 Million Tons

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