An oil giant Saudi company, Saudi Aramco along with Saudi Basic Industries Corp (SABIC) has signed a MoU on Sunday to build a complex which will convert crude oil to chemicals in the kingdom (country) itself. This complex would cost government $20 billion complex converting crude oil to chemicals in the kingdom.
This project reflect Saudi’s desire to spread its leg in the Petroleum or oil subsidiary businesses like tar, chemicals etc.
The upcoming project, which if approved by the year 2020 would be operational by 2025. This project would be the biggest crude-to-chemicals unit in the world and shows that Saudi government is ready to pay more attention to diversifying its economy.
The complex would start operations in 2025, processing about 400,000 barrels per day of Arabian Light crude oil to produce about 9 million tonnes of chemicals and base oils annually, plus 200,000 bpd of diesel for domestic consumption.
SABIC’s chief executive Yousef al-Benyan informed media that it is happening for the first time that two giant Saudi oil manufacturers are joining hands.