INEOS to invest £1.5bn to build three chemical plants in Saudi Arabia
June 05, 2019 – UK-based chemicals multinational INEOS has signed a memorandum of understanding (MoU) with Saudi Aramco and France-based Total to build three new chemical plants in Saudi Arabia.
INEOS plans to invest $2bn (£1.5bn) to build a new 425,000-tonne acrylonitrile plant featuring INEOS’ technology and catalyst, a 400,000-tonne Linear Alpha Olefin (LAO) plant, and world-scale Poly AlphaOlefin (PAO), all of which will be built as part of $5bn (£3.9bn) Jubail 2 petrochemical complex.
The petrochemical complex is being developed by Saudi Aramco and Total. It is expected to supply more than $4bn (£3.1bn) of downstream derivatives and speciality chemicals units.
INEOS chairman Jim Ratcliffe said: “This is a major milestone for INEOS that marks our first investment in the Middle East.
“The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in The Kingdom.”
The UK firm said that the three units, upon commissioning in 2025, will be the most energy efficient of its kind in the world.
INEOS Oligomers CEO Joe Walton said: “INEOS Oligomers is one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally.”
The three plants will be equipped to produce the key building blocks for carbon fibre, engineering polymers and synthetic lubricants that are considered to be pivotal to economic growth in the region.
INEOS Nitriles CEO Paul Overment said: “Global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre.”
Recently, INEOS announced its plans to invest €3bn (£2.6bn) to build a new plant at Antwerp; £1bn across the UK; acquisitions in China; and capacity increases in the US Gulf Coast, Alabama and Chocolate Bayou facilities.