Sahara International Petrochemical Company (Sipchem) has awarded a $500 million (1.87 billion Saudi riyals) engineering, procurement, and construction (EPC) contract for the expansion of the ethylene cracker plant at the Saudi Ethylene and Polyethylene Company (SEPC).

The project’s expansion and production are slated to be completed in the first half of 2026, the company said in a statement to the Saudi stock exchange on Sunday.

The expansion will lead to an increase in Olefins production by an estimated 18%.

The contract is expected to boost Sipchem’s consolidated financial results, the statement added.

SEPC is a joint venture of Tasnee Sahara Olefins Company, which Sipchem owns by 32.55 percent.

(Editing by Seban Scaria seban.scaria@lseg.com )