SABIC plans to build the kingdom’s first oil-to-petrochemicals complex

Saudi Arabian Basic Industries Corp, SABIC, the Middle East’s largest company by market capitalization, is in final stages of a study to construct an oil-to- petrochemicals complex, which will be the first in the kingdom as the company seeks to maintain its competitive edge in the industry, the company said in a statement to the Saudi bourse, Tadawul.

The petrochemicals giant, 70-percent owned by the Saudi government, will use an innovative technology to directly convert crude oil to petrochemicals. The complex, which will use 10 million metric tons of crude oil a year, is expected to be operational in 2020 and will provide about 100,000 direct and indirect jobs.

Petrochemical companies usually use refined oil products to make petrochemicals, which is then used to make plastics and other products.

ExxonMobil started the world’s first plant that processes crude oil into chemicals in Singapore earlier this year to compete against Middle Eastern rivals who have cheap feedstock.