Saudi Arabia's Ministry of Energy has allocated feedstock necessary for establishing industrial complexes by National Industrialization Company (Tasnee) and Sahara International Petrochemical Company (Sipchem)  in Jubail Industrial City.

Tasnee) received approval from the ministry to allocate feedstock (ethane, propane and butane) on Wednesday.

The complex includes a thermal cracking unit for ethylene production with high world-scale capacity, the company said in a statement to the Saudi stock exchange.

The project will have a production capacity of nearly 3.3 million metric tonnes of petrochemical products, including high and linear low-density polyethylene and methyl tert-butyl ether (HDPE. LLDPE, MTBE).

In addition, the complex will produce next-generation phthalate-free plasticisers, new grades of polyether polyols and EO/PO copolymers for a range of applications in the domestic petrochemical industry.

The company will begin initiating the necessary engineering designs for the project, with the targeted start-up date in the fourth quarter of 2030.

Separately, Sahara International Petrochemical Company (Sipchem)  received the approval from the ministry to allocate the quantities of feedstock needed to establish a joint petrochemical complex in collaboration with US-based LyondellBasell in the Jubail Industrial City.

The complex will have an annual production capacity of 1.5 million metric tonnes of ethylene and 1.8 million metric tonnes of derivative products, including basic and specialty polymers, the company said in a statement to the Saudi stock exchange.

Sipchem will hold a 60% stake in the joint venture, while LyondellBasell will own the remaining 40%.

The Saudi-listed petrochemicals producer intends to develop the complex in phases to maximise added value in the medium and long term.

Energy-efficient technologies and feedstock will be used in partnership with LyondellBasell, the company said. 

No financial details were given by the two companies.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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