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Hydrocarbon-based Projects
Cracker and Downstream Petrochemicals
Cracker and Downstream Petrochemical Project
Global demand for polyethylene and polypropylene are expected to increase at an average of 7.6 % and 6.5 % per annum respectively. Over 60 million tons of additional capacity must be created to meet this demand growth. Although several new projects are under various stages of implementation/development all over the globe, the availability of cheaper feedstock and the geographical advantage to ship to large Asian markets make the Middle East Region the most attractive location for such additional investments.
The market scenario would justify new capacity addition in excess of 1 million tons of Ethylene and 0.4 million tons of Propylene in Saudi Arabia. This new capacity could trigger a series of downstream industries producing polyethylene, ethylene oxide, ethylene glycol, ethyl benzene, styrene and polystyrene, polypropylene, propylene oxide, propylene glycol, polyols, acrylonitrile, acrylic fibers, and epoxy resins and scores of other downstream projects. A Mega Petrochemical Complex could be established in a preferred location, such as Yanbu.
- Possible partners: Major International Petrochemical Group(s), SOLP, and Saudi Investors
- Estimated investment: US$ 1.5 to 2 Billion
