The initiative aims to implement advanced technology to reduce carbon footprint, combine aspects of the circular economy, and make a commitment to high environmental standards
The agreement was signed by the CEOs of all three firms. (Credit: SABIC)
Saudi chemical manufacturing firm SABIC, Oman’s global integrated energy company OQ and Kuwait Petroleum International (KPI) have inked a project development deal for a jointly owned petrochemical complex in the Special Economic Zone at Duqm (SEZAD).
All three parties intend to establish a petrochemical complex consisting of a steam cracker and derivative units and a natural gas liquid (NGL) extraction facility.
As per the agreement, the firms will conduct all the important studies and partner using their technical expertise and commercial experience.
The developed project will be globally competitive and profitable for all three partners, SABIC said.
The project aims to capitalise on Natural Gas Liquids and other feedstocks from OQ and KPI’s joint venture refinery, OQ8, in Duqm, to produce petrochemical goods. It will help to expand markets such as the energy transition, clean technologies, mobility, construction, durable goods, healthcare, and packaging.
SABIC CEO Abdulrahman Al-Fageeh said: “SABIC’s collaborative approach has built longstanding relationships of collaboration, delivered innovative solutions and created mutual value for more than 45 years.
“This agreement enables us to identify and assess opportunities for ambitious and sustainable growth by bringing together our capabilities, expertise and technologies and working collectively with our partners.
“Our involvement in this well-positioned project is consistent with our growth strategy and Saudi Vision 2030 goals to develop a stronger downstream business, addressing challenges in the petrochemicals industry such as carbon neutrality, and providing diversified and sustainable products.”
The initiative aims to implement advanced technology to reduce carbon footprint, combine aspects of the circular economy, and make a commitment to high environmental standards, the Saudi Arabia-based chemical producer claimed.
The project will also support the region’s growth objectives, maximise the socioeconomic effects and add value to these enterprises.
According to SABIC, the project would also profit from Duqm’s prime location, which puts it close to markets and lets it take advantage of the infrastructure that has been built there. OQ has plans to assist SEZAD in becoming a centre for manufacturing and logistics in line with its vision 2040.