Saudi Arabia Launches Two World-Class Petrochemical Projects

The Saudi Ministry of Energy recently approved the feedstock supply plans for two mega petrochemical projects located in the Jubail Industrial Zone. With a combined annual production capacity of 6.6 million tons, these projects represent a significant investment and are set to substantially enhance Saudi Arabia’s strategic position in the global petrochemical market.

The first project, led by Saudi National Industrialization Company (Tasnee), is designed with an annual capacity of 3.3 million tons. Utilizing advanced steam cracking technology, the project will primarily produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and methyl tert-butyl ether (MTBE). Notably, the project will achieve several technological breakthroughs, including the first large-scale production in the Middle East of phthalate-free plasticizers, novel polyether polyols, and ethylene oxide-propylene oxide copolymers, among other high-end specialty chemicals, filling regional industrial gaps.

The second project is a joint investment by Sahara International Petrochemical Company and global chemical giant LyondellBasell Industries. It will include a 1.5 million tons per year ethylene cracker and a 1.8 million tons per year polymer production unit. The product line will cover both basic and specialty polymers, further refining Saudi Arabia’s petrochemical industry chain and increasing product added value. The implementation of these two projects will significantly propel the Saudi petrochemical industry towards higher-end and more specialized development.