SABIC is studying the establishment of a complex to convert oil and liquids into petrochemical products in Ras Al-Khair in the Kingdom of Saudi Arabia. The complex is expected to convert 400,000 barrels of crude oil per day to produce about 9 million tons of chemicals per year. Taking into account the crude oil processing capacity and chemical production rate, the plant is expected to have a conversion rate of 50 %. The plant is expected to be operational by 2025. The estimated investment cost for the plant is around $20 billion.
Changes in mobility (transportation) are likely to reduce growth in fuel-based demand for crude oil, driving the oil industry into new businesses. Crude oil-to-chemicals (COTC) technology allows crude oil to be converted directly into high-value chemical products instead of conventional fuels. A refinery and a petrochemical plant are merged into a single facility.
Most of the COTC plants planned or already in operation are located in China or the Middle East. COTC plants are primarily designed to increase the yield of light olefins or aromatics such as benzene, toluene, and xylene.
The COTC project is part of SABIC’s strategic growth plans. SABIC is reviewing the project in collaboration with the Saudi Ministry of Energy and Saudi Aramco, its parent organization, in terms of maximizing the benefits of the hydrocarbon resources for the company’s shareholders, strengthening SABIC’s global position, and achieving the goals of Saudi Vision 2030.
SABIC is to develop another COTC complex in Yanbu in the Al Madinah Province of western Saudi Arabia.
- SABIC, Riyadh, Saudi Arabia