Aramco and SABIC Re-assess Crude-to-Chemicals Complex
Saudi Aramco and SABIC are re-evaluating the scope of their proposed crude oil-to-chemicals (COTC) complex in Yanbu, Saudi Arabia.
In a filing on with the Saudi Stock Exchange – or Tadawul – on Oct. 18, SABIC said the partners will expand the scope of the project to include existing development programs of advancing crude-to-chemicals technologies as well as through integrating existing facilities.
Consequently, they will study the integration of Aramco’s existing refineries in Yanbu with a world-scale mixed feed steam cracker and downstream olefin derivative units to “maximize economic value while evaluating the optimal technical options and market risks.”
The companies signed a Memorandum of Understanding in November 2017 to study the feasibility of developing the complex, which was expected to cost between $20 billion to $30 billion and produce about 9 million t/y of petrochemicals by 2025.
Both groups have seen their net profits swing into loss in the first half of 2020 as average selling prices and sales volumes were down amid the ongoing coronavirus pandemic.
Nevertheless, SABIC and Aramco said they remain committed to continue advancing crude-to-chemicals technologies with the goal to increase cost efficiency, competitiveness and value creation opportunities for petrochemicals.
Author: Elaine Burridge, Freelance Journalist
