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CHAPTER THREE
Arab And World Developments
more than 6 million tons/year of ethylene, propylene and ethylene
glycol through 16 production units.
Saudi Arabia has announced plans for several petrochemical
projects.SaudiAramcoandUSDowChemical announcedestablishing
their giant $20 billion joint venture petrochemical complex at Al-
Jubail-II industrial city instead of Ras Tanoura. The joint venture,
named the Sadara Chemical Company, is being touted as the largest
integrated petrochemical facility ever built in one single phase and it
is expected to start production in mid 2016.
The complex will use ethane and naphtha derived from oil and natural
gas liquids as feedstock. The feedstock will be supplied also from the
Saudi Aramco Total Refining and Petrochemical Company’s (SATORP)
refinery, which is currently under construction in Al-Jubail.
Earlier this year, Saudi Arabia’s Royal Commission for Al-Jubail
and Yanbu approved investment of $5.6 billion for several projects
at Al-Jubail Industrial City.
Al-Jubail Petrochemical Co., is a 50/50% joint venture of Saudi
Basic Industries Corp. (SABIC) and Exxon Mobil Corp.
Saudi International Petrochemical Co. (Sipchem) was approved
to develop a $7.5 billion venture to produce 200,000 tons/year of
ethylene vinyl acetate and low density polyethylene (LDPE).
Arabian Petrochemical Company (Petrokemya), a SABIC wholly-
owned affiliate, announced that it has signed a letter of intent with
Tecnicas Reunidas of Spain for the engineering, procurement and
construction of a new acrylonitrile butadiene styrene (ABS) plant
with a capacity of 140,000 tons/year at the Petrokemya complex in
the Al-Jubail industrial city.
The total investment in the project is estimated at $561million
and Petrokemya is planning to finance it from its own resources. The
