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Sabic at feasibility study on Saudi Arabia Oil-To-Chemicals complex

Sabic mulls over world largest Oil-To-Chemicals project

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe world largest ethylene producer, Saudi Basic Industries Corporation (Sabic) is mulling over the design and construction of the world ever largest Oil-To-Chemical (OTC) complex in Saudi Arabia.

In the same way as Saudi Aramco invested heavily these last years on the downstream activities, Sabic is considering again massive capital expenditure to expand its petrochemical activities in the Kingdom.

Sabic_Yanbu_Oi-To-Chemical_Complex_MapSaudi Arabia is looking desperately for reducing its reliance on crude oil export at the same speed as the USA are ramping up their production of oil just in case the oil market should follow the natural gas market after the shale gas development.

In addition each $billion invested in the downstream sector is producing four times more employment that the same $billion in the upstream side.

This shale gas glut has also provided the US market with a major competitive advantage to produce olefin and polyolefins.

On its side Saudi Arabia is running short of gas and all the investigations to develop local reserves of unconventional gas have returned little hope to see such exploration – production project in operations before long because of the water and costs required with current technologies.

Therefore the only alternative for Sabic to consider taking a new leap in the petrochemical sector is to develop commercially viable Oil-To-Chemical solutions.

In 2013, ExxonMobil started up the first large scale Oil-To-Chemical plant in Singapore.

Sabic Oil-To-Chemical complex to be located in Yanbu

To be located in Yanbu on the west coast of Saudi Arabia, Sabic Oil-To-Chemical complex should have a capacity of 200,000 barrels per day (b/d).

In addition the energy required to run such large plant may represent 50,000 b/d.

In the Oil-To-Chemical process the crude oil refining is fully integrated in the petrochemical process transforming and recycling all the by-products.

In this Oil-To-Chemical project, Sabic is considering to use the refined crude oil to feed directly three steam crackers, each one dedicated to:

 Naphtha

 – Fuel oil

 – Natural gas liquids (NGL)

Then olefin and aromatic petrochemical units will be integrated together around these crackers to produce:

Sabic_Yanbu_Oi-To-Chemical_Complex – Ethylene

 – Propylene

 – Benzene

 – Toluene

 – Xylene

With more than $30 billion capital expenditure, Sabic Yanbu Oil-To-Chemical  should become by far the largest project ever built in Saudi Arabia.

To be commercially viable such Oil-To-Chemical supposes a long term agreement between Sabic and Saudi Authorities regarding the transfer price of the crude oil barrel.

The working scenario is to align the barrel price on its gas price equivalent per million BTU in the Kingdom.

At the end the choice for Saudi Arabia is to export this additional crude oil at high price, but at the risk to influence market prices down, or to keep control of the oil market as today and build added value on subsidized crude oil at home through Sabic.

Sabic is targeting to run its Yanbu Oil-To-Chemical project by 2020.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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13 Comments to “Sabic at feasibility study on Saudi Arabia Oil-To-Chemicals complex”

  1. kindly send me all new news, due to interested of Participating

  2. kindly requesting to please send me also all new news because i am interested in participating

  3. Sabic Oil-To-Chemical complex to be located in Yanbu, (PGI Systems)

  4. dear

    when is this project will be star?

  5. can you please update then when this project is going to start physically?
    How about SMPs man power, have Aramco start moving guys to this project, if any plan then when??/

  6. I want to join inside this project
    I WORKING ON THE ETHYLENE UNITE SUPERVISOR

  7. I am chemical engineer with 17 years experience (10 years KSA) want to participate in feasibility study.

  8. please send me all detail of otc , since I am dcs honewel c300 controller engineer, I want to participate in electrical and automation detail study.

  9. I am ex employee for sabic I work around 11 years in sabic and now working in Algeria.

  10. Please add me to the list, as we are working on this project. Thank you.

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