Saudi Aramco and Sabic plan to build oil-to-chemicals complex

On Sunday, 26 November 2017, state oil giant Saudi Aramco and Saudi Basic Industries Corp signed a memorandum of understanding to build a complex to convert crude oil to chemicals in the kingdom, media reports said.

The USD 20 billion project would be the largest oil-to-chemicals plant in the world, processing about 400,000 barrels per day of crude oil; outputting 9 million tonnes of chemicals and base oils annually, plus 200,000 barrels per day of diesel for domestic consumption. Final decision would be made by end of 2019 and if the two companies push ahead, the facility would be ready for operation by 2025.

Representatives from Saudi Aramco expected to see an estimated 30,000 jobs directly and indirectly linked wit the new complex and would add 1.5 per cent to Saudi Arabia's gross domestic product by 2030.

Such investment is a clear sign of Saudi Arabia government’s heavy effort to steer the economy beyond crude oil export by focusing on value-added manufacturing industries such as chemicals, as well as service industries like tourism.