Sipchem gets Energy Ministry’s nod on feedstock allocation for Jubail petchem complex

Logo of Sahara International Petrochemical Co. (Sipchem)

Sahara International Petrochemical Co. (Sipchem) obtained, on Feb. 26 the approval of the Ministry of Energy to allocate quantities of the necessary feedstock for the establishment of a petrochemical complex in Jubail Industrial City, the company said in a filing to Tadawul today, Feb. 27.

The complex will be established in partnership with LyondellBasell with an annual production capacity of 1.5 million metric tons of ethylene, in addition to 1.8 million tons of derivative products, including basic and specialty polymers.

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Sipchem will own 60% of the project, while LyondellBasell will own the remaining 40%.

This project marks a significant step in achieving Sipchem’s growth strategy and further strengthens its position in the petrochemicals industry.

The company will utilize cutting-edge, energy-efficient, and feedstock-optimized technologies in collaboration with LyondellBasell, which is expected to substantially impact the project’s success.

Additionally, Sipchem plans to develop the project in phases to maximize added value over the medium and long term.

Any related material developments will be announced in due course, the statement said.