Saudi Aramoc and Saudi Basic Industries Corporation (SABIC) signed a memorandum of understanding (MoU) for the construction of a petrochemical complex, Reuters reports.
The projected cost of the project is billion.
The facilities, upon completion, will be used to produce chemicals from Saudi Arabia’s crude, according to the news agency.
A final decision on whether to go ahead with the project will be made next year, the CEO of Saudi Aramco, Amin Nasser, said, according to Reuters. The city of Yanbu, located on the Red Sea, is a possible location for the facility, he added.
Production from the complex would not begin until 2025. The facility would have the capacity to produce 9 million tons of chemicals and base oils per year. In addition, it would be able to refine 200,000 barrels per day (b/d) of diesel, Reuters reports.
The new facilities would directly convert Arab Light to petrochemicals, potentially reducing costs, Platts previously reported.