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Saudi Basic Industries Corp. (SABIC) expects to complete the second phase of economic and technical studies for its crude oil to chemicals (COTC) complex project by the end of 2019, chief executive Yousef Al-Benyan told Al Arabiya.
Yanbu has been chosen as the location for the project, which SABIC is developing with Saudi Aramco, he added.
The COTC complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of chemicals and base oils annually. Operations are likely to start in 2025.
The project is part of SABIC’s strategy to develop its domestic and international manufacturing capacity, and diversify its feedstock sources beyond natural gas, Al-Benyan said.
He added that SABIC is looking forward to other future projects in partnership with Aramco, to increase oil utilization.
SABIC and Aramco this week signed a memorandum of understanding (MoU) to develop the world’s largest fully integrated COTC complex in the Kingdom.
The complex is expected to create an around 30,000 direct and indirect jobs, the firms said in a statement.
Related News
Aramco, SABIC sign deal for oil-to-chemicals complex |
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