Saudi Aramco has signed an agreement with Japan's Sumitomo Chemicals over a feasibility study for a $3 billion
petrochemical and refining project at Rabigh, 130 kilometers north of Jeddah, according to Arab News.
The project is part of plans to expand Aramco's refinery there. Sumitomo was one of three companies shortlisted as a potential partner to carry out the studies. The other two were Saudi Basic Industries Company (SABIC) and US' Dow Chemicals. The project, one of the largest private
investments in the Kingdom, will be Aramco's first foray into the domestic petrochemical sector.
The facility is expected to produce an annual 1 million tons of ethylene, a basic ingredient for petrochemical products. The ethylene would be processed from ethane extracted from natural gas. The plant would also produce such plastics as polyethylene used in packaging. (menareport.com)
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