News Post
SABIC and Saudi Aramco are reevaluating their plans for the upcoming Yanbu COTC project
SABIC recently announced that it was reevaluating and likely expanding its vision for the crude oil-to-chemicals (COTC) project in Yanbu, Saudi Arabia with the integration of existing infrastructure.
The company stated to the Saudi stock exchange that it plans to expand this project alongside Saudi Aramco “to include existing development programs of advancing crude to chemicals technologies as well as through integrating existing facilities” as a means of maximizing value in the face of current market risks. Earlier this year, Aramco purchased a 70% stake in SABIC and since then both companies have significantly reduced its capex plans due to the COVID-19 impact.
The Yanbu COTC project was initially envisioned three years ago to process 400,000 barrels per day of crude oil feedstock into 9 million tons per year of chemical and base oil products, with a startup anticipated in 2025. That date could potentially shift in the face of this redirection, and the expected project cost of $20 billion is expected to come down as the project eschews the building of a new plant and rely on existing facilities nearby instead.
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