Saudi Aramco and its petrochemical subsidiary SABIC are re-evaluating the scope of their US$20 billion (€17 billion) crude-oil-to-chemicals (COTC) complex at Yanbu.
According to a statement released by SABIC to the Tadawul Stock Exchange, the companies will look at integrating existing facilities at the site to maximise the economic value, and will also consider the ‘optimal technical options and market risks’. The original plan had been to build an entirely new complex.
‘Both parties intend to re-evaluate the scope of the crude-oil-to-chemicals (COTC) complex project and study the integration of Saudi Aramco’s existing refineries in Yanbu with a world-scale mixed feed steam cracker and downstream olefin derivative units,’ SABIC says in the statement.
Sources told Bloomberg in September that Saudi Aramco was scaling back plans for Yanbu, as it sought to save money in the wake of the energy price crash to preserve its dividend, which it had promised to protect. The sources also said the company was reviewing its decision to buy 25% of Sempra Energy’s Port Arthur LNG terminal in Texas, US.
SABIC says that the two companies ‘remain committed’ to advancing COTC technologies.