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Saudi Basic Industries Corp (SABIC) will sign an agreement on Tuesday with Saudi Arabian Oil Co. (Saudi Aramco) for a joint study to develop a fully integrated complex that would produce petrochemicals directly from crude oil, the petrochemicals producer said in a statement to Tadawul.
While SABIC didn’t say how long the study would take, it explained that there would not be any significant financial impact from it.
In May, SABIC said the complex in Yanbu could cost as much as $30 billion.
The initiative falls in line with Saudi Arabia’s recently unveiled economic reform plan. Part of the strategy involves using oil-based chemicals to produce materials that can be made into plastic products, and supporting the kingdom’s manufacturing sector.
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