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Saudi Basic Industries Corp. (SABIC) procured a total of SAR 10.4 billion in local products and services in 2016, accounting for 64 percent of the company's annual purchases in Saudi Arabia, state-run news agency SPA reported, citing chief executive Yousef Al-Benyan.
The petrochemical giant bought locally manufactured products worth SAR 2.6 billion, representing 35 percent of total purchases of materials in 2016.
Meanwhile, SABIC awarded service contracts worth a total of SAR 7.8 billion locally, the chief executive said, speaking at an industry conference.
The number of qualified local suppliers more than doubled from 230 to 545 by the end of last year, Al-Benyan noted.
SABIC and American oil major ExxonMobil’s affiliates signed an agreement on Saturday to conduct a detailed study of their proposed jointly-owned petrochemical project in Texas, and begin planning for front-end engineering and design work.
The project will contribute to the implementation of Saudi Arabia’s Vision 2030 economic diversification program, and create new investment opportunities for both companies, said SABIC chairman Prince Saud Bin Abdullah Bin Thenayan Al-Saud.
The proposed complex in San Patricio County will have an ethane cracker with a production capacity of 1.8 million tons of ethylene per year, to feed a monoethylene glycol unit and two polyethylene units – subject to the outcome of the ongoing studies.
A final decision on the project is anticipated to be made some time in 2018.
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