Feasibility Study Agreement on Crude Oil-to-chemicals between Saudi Aramco and SABIC Marks New Beginning
It is the new beginning in the petrochemicals trade, when Saudi Arabia based oil and petrochemical firms -Saudi Aramco and SABIC agree on a strong feasibility study on crude oil-to-chemicals complex. Saudi Aramco and Saudi Arabian Basic Industries Corporation (SABIC) has entered into memorandum of understanding to involve itself into feasibility study on the development of a fully integrated crude oil-to-chemicals complex, with focus on the strategic location in Saudi Arabia.
This understanding is essentially based on the principles of cooperation, and gives way to joint cooperation to companies. The joint memoranda will give a phenomenal boost to business and oil trading, through the way of superior refining technology. Once the agreement is materialised, the crude oil-to-chemicals process would bring out the way towards innovative configurations, where the entire trading modus-operandi would work on the proven conversion technologies.
Saudi Aramco President and CEO, Amin H. Nasser opined as: “Saudi Aramco agreement with SABIC is a conspicuous reflectance of vision to build on Saudi Arabia’s global leadership in crude oil production and commodities export through increase in the production of oil-based petrochemicals and hydrocarbon exports. This agreement is going to increase the diversification of industries, development of technology and bring forth mass employment opportunities.”
The Memorandum of Understanding will be helpful in developing a fully integrated petrochemical complex, which increases the petrochemicals yield and besides everything else, change and recycles by-products, will increase the efficiencies of scale and resource optimization, and branch out the petrochemical feedstock mix in Saudi Arabia.
SABIC vice chairman and CEO, Yousef Abdullah Al-Benyan was of the opinion: “With this agreement, SABIC and Saudi Aramco can drive towards the diversification of Saudi Arabia’s feedstock mix, and lead oil towards the viable petrochemical feedstock. We are optimistic and confident that our agreement to conduct a joint feasibility study on the development of an integrated crude oil-to-chemicals complex in Saudi Arabia will make the headway to new forms of development.
The agreement of feasibility has special relevance and importance associated to the Saudi Arabia’s Vision 2030 goals – “ Development of new opportunities toward creating a world leading downstream sector in Saudi Arabia, primarily built on four main driving centers:
- Enhancing the worth from the crude oil production in Saudi Arabia through vertical and horizontal integration in the hydrocarbon chain;
- Facilitate the development of conversion industries, which will produce semi-finished and finished goods for economy expansion;
- Instantaneous development of advanced technologies and innovation;
- Sustainable development in assent with National Transformation Program of Saudi Arabia.
In gist, the feasibility study agreement on Crude Oil-to-chemicals between Saudi Aramco and SABIC will lay down the foundation for the strong economic growth and sustained development in the petrochemicals industry.