INEOS has announced it has signed a Memorandum of Understanding with Saudi Aramco and Total to build three new plants as part of the Jubail 2 complex in Saudi Arabia.
A new state-of-the-art 425,000 tonne acrylonitrile plant will use INEOS’ world leading technology and catalyst, and will be the first plant of its kind in the Middle East when it starts up in 2025.
INEOS will also build a 400,000 tonne LinearAlphaOlefin (LAO) plant and associated world-scale PolyAlphaOlefin (PAO), with these units being the most energy efficient in the world when they begin production in 2025.
The location in Saudi Arabia will give INEOS access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.
Jim Ratcliffe, Chairman of INEOS, said: “This is a major milestone for INEOS that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in Saudi Arabia”
Paul Overment, CEO of INEOS Nitriles, said: “Global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites, and carbon fibre.”
“This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world.”
Joe Walton, CEO of INEOS Oligomers, said: “INEOS Oligomers is one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally.”
Patrick Kirby, Wood Mackenzie Chemicals Principal Analyst, said: “INEOS’ business is primarily centred in Europe and the US currently, so this represents a geographical diversification for the company.”
“The new investments will be integrated with the Saudi Aramco and Total mixed-feedstock steam cracker complex that is expected to be 1.5 million tonnes in size. This will allow for a much wider portfolio of derivatives than previous ethane cracker investments in Saudi Arabia.”
“Mixed-feedstock steam cracking and closer integration of refining and chemical operations in Saudi Arabia represents a wider trend developing in the Middle East and Asia Pacific, as major oil company’s look to gain further exposure to the petrochemical industry as transportation fuels are set to decline.”
