Saudi Aramco, Dow to build chemicals, polymers complex

Dhahran, Saudi Arabia – Saudi Aramco and Dow Chemical Co. have signed a Memorandum of Understanding for the construction, ownership and operation of a world-scale chemicals and plastics production complex in Saudi Arabia.

The agreement for the Ras Tanura Integrated Project requires the formation of a joint venture company to build, own and operate the facility, which is to be located near Ras Tanura in Saudi Arabia’s Eastern Province.

The Ras Tanura petrochemical joint venture will be operationally integrated with Saudi Aramco’s giant Ras Tanura Refinery complex and Juaymah gas processing plant, which will supply feedstock to the JV.

The complex is to be one of the world’s largest grassroots plastics and chemicals facilities, producing a broad range of products including ethylene, propylene, aromatic and chlorine derivatives. The project scope includes world-scale production units for polyethylene, ethylene oxide and glycol, propylene oxide and glycol, chlor-alkali, vinyl chloride, urethane chemicals, epoxy resins, polycarbonate, amines and glycol ethers.

“This project will leverage our largest refining asset and enhance its profitability by capitalising on the value addition opportunities and synergies existing between refining and petrochemicals,” said Abdallah S. Jum’ah, president & CEO of Saudi Aramco.

“The wide range of chemical materials and plastics to be produced by the joint venture will help spawn other downstream chemical conversion industries, thus strengthening the role of the chemical sector as a key enabler of many other future investments in the

Kingdom of Saudi Arabia,” Jum’ah added in a 12 May press statement.

According to Dow chairman and CEO Andrew Liveris: “The complex will have a long-term, secure and reliable feedstock position with integration to the adjacent refinery and gas processing plant, while positioning the new enterprise to grow its product sales.”