Award marks important milestone in feasibility study of Saudi-based global-scale steam cracker and derivatives
Sipchem and LyondellBasell (LYB) had been awarded a feedstock allocation from the Ministry of Energy of Saudi Arabia assisting a joint feasibility study for a world-scale combined feed cracker complex mixed with a diverse by-product portfolio. Sipchem and LYB will determine the possibility and optimal structure for the venture, which will be the evolved 60% (Sipchem) 40% (LYB) ownership basis.
The allocation lays the foundation for each parties to outline the technical, economic and commercial configuration for the venture. Construction of the joint venture would bring about the production of petrochemical products and derivatives to serve clients both within the Kingdom of Saudi Arabia and worldwide export markets while growing numerous thousand local job opportunities.
With price-benefit feedstocks, world-scale assets, leading technologies, and closely to key worldwide markets, the joint venture has the capability to create lasting value. The venture will gain from LYB’s technologies to manufacture differentiated grades of polyethylene and polypropylene, such as the Catalloy product line of elastomeric polyolefins.
Sipchem and LYB will together discover carbon management solutions inclusive the use of low emission technologies, in guide of the parties’ and the Kingdom’s net zero goals.
“Our partnership with LyondellBasell marks an important milestone in our pursuing of formidable aims for sustainable growth and the strengthening of our role within the petrochemical market domestically and globally,” stated Abdullah Al-Saadoon, Sipchem chief govt officer.
“Through this collaboration, we are able to leverage the latest modern-day, energy-efficient technologies, considerably contributing to our environmental targets and improving the sustainability of our operations. We expand our gratitude to the Ministry of Energy for its unchangeable aid of the petrochemical industry, which has been instrumental in allowing us to achieve our shared aims. We are enthusiastic about promoting this venture and are dedicated to delivery high- quality products that will force the development of the commercial quarter in the Kingdom of Saudi Arabia.”
“This feedstock allocation is a crucial step in our collaboration with Sipchem,” stated Peter Vanacker, LyondellBasell chief govt officer. “As we move forward with our joint study, with a protracted-time period partnership in mind, we further reinforce our commitment to Saudi Arabia. Thank you to the Ministry of Energy for their help and collaboration as we build on our a success partnership. We stay up for being a large part of the Kingdom’s thriving economic system, which continues to develop and offer numerous opportunities for development and innovation.”
