S Arabia 'set to produce over 10% of global basic petchems'

12 May 2005 17:25  [Source: ICIS news]

LONDON (CNI)--Within the next few years, Saudi Arabia will be producing over 10% of the world’s basic petrochemicals, Ziyad Al-Shiya, director of new business evaluation at oil and gas producer Saudi Aramco, said Thursday.

 

Al-Shiya, who was speaking here at consultant CMAI’s Petrochemical Focus Conference, said Saudi Arabia had ‘blossomed’ over the past few decades and was set to continue its significant growth over the coming years.

 

Saudi Arabia - the world’s leading crude supplier – is now home to more than 500 chemical plants, 20 times more than during the 1970s. The rapid expansion, he noted, has been fuelled by substantial investment, which has risen from $0.5bn in the 1970s to $20bn in 2000. These levels "should exceed $40bn by 2008".

 

A number of "ambitious" projects are currently planned in the country, including the construction of seven crackers, which are in various stages of development and should be completed by 2008.

 

Saudi Aramco, said Al-Shiya, is also investing around $3bn (about Euro2.3bn) in new ethane and NGL (natural gas liquids) recovery.

"In addition to focusing on and establishing the gas-based petrochemical industry, we are also moving to focus on the liquid-based petrochemical industry through integration with refining facilities."

 

The $6bn Rabigh refinery project – a joint venture between Saudi Aramco and Sumitomo Chemical – will, when completed, produce 2.4m tonne/year and is due onstream in early 2008.

 

A new export refinery is also planned, which is intended to ensure a reliable supply of crude oil and serve Asia, Europe and the US.

 

A third project, the Ras Tanura refinery, a world-scale ethane/naphtha steam cracker, will be presented to investors later this year.

By: Andy Brice
+44 20 8652 3214

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