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Kemya awards $3.4 billion Al-Jubail Elastomer project

ExxonMobil and Sabic to build a world scale synthetic rubber greenfield plant in Middle-East 

Al-Jubail Petrochemical Company (Kemya) is a 50/50 joint venture between Saudi Basic Industries Corporation (SABIC) and Exxon Chemical Arabia Inc., an affiliate of ExxonMobil Chemical Company.

The two companies have collaborated closely since the joint venture was established in 1980, producing polyethylene, ethylene and propylene.

The new synthetic rubber project represents a significant broadening of Kemya’s  product portfolio.

The fast expansion of the transportation activities in the Middle East and Asia-Pacific region has created strong demand for synthetic rubber products.

The new world-scale Kemya elastomers project will help meet this ever-growing demand.


In November 2008Sabic and ExxonMobil Chemical had signed an agreement to undertake a feasibility study for establishing a new elastomers plant at Kemya facility.

Continental, ExxonMobil and Goodyear technologies

Technology licence agreements have also been finalised with Continental Carbon Company for its carbon black production technology.

Goodyear Tire & Rubber Company has been contracted to provide its SBR and polybutadiene rubber technology.

The facility will rely on commercially competitive, high-impact technologies, including proprietary ExxonMobil EPDM, thermoplastic elastomer (TPE) and halobutyl rubber technologies.

Fluor, Jacobs and Mitsui completed the FEED

In May 2011Sabic and ExxonMobil awarded the front end engineering and design (FEED) contracts for the process units of the project to Jacobs Engineering and Mitsui Engineering & Shipbuilding.

Fluor Transworld Services was awarded the FEED contract for associated support facilities.

In February 2012, the Saudi Arabia’s Royal Commission approved the project with an estimated capital expenditure  of $2bn, but today the total amount of capital expenditure awarded has reached $3.4 billion.

The Al-Jubail Kemya Saudi Elastomers facility will have the capacity to produce up to 400,000 t/y of synthetic rubber including:

 – Halobutyl

 – Styrene butadiene

 – 102,000 t/y Polybutadiene

 – Ethylene propylene diene monomer (EPDM) rubbers

 – Thermoplastic specialty polymers

 – 50,000 t/y Carbon black

The Kemya Saudi Elastomers project will be integrated with the existing Kemya Al-Jubail complex and completion is anticipated in 2015.  

ExxonMobil and Sabic select Daelim, Technip and Tecnicas Reunidas for EPC contracts

Kemya has awarded a total of six packages for the engineering, procurement, and construction (EPC) contracts for the elastomers facility to: Daelim Industries, Technip, and Tecnicas Reunidas.

The project will be implemented via EPC lump sum turnkey mode.

Daelim won the package 3, worth $ 710 million, to construct indirect support facilities and auxiliary facilities (utilities & offsites) for the Kemya Saudi Elastomers Project.

Technip was awarded the Halobutyl unit to produce 110,000 t/y and will execute the contract from its Abu Dhabi office in UAE.

The Kemya elastomers facility demonstrates Saudi Arabia‘s commitment to mobilize all the technologies from ExxonMobil, Sabic, Continental, Goodyear around the most experienced engineering companies (Daelim, Fluor, Jacobs, Mitsui, Technip, Tecnicas Reunidas) to build and champion a first-rate synthetic rubber industry in Saudi Arabia that supports job creation, develops downstream industries and helps diversify the local economy.

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7 thoughts on “Kemya awards $3.4 billion Al-Jubail Elastomer project”

  1. muhammed ashraf mohyyadi

    I have worked here as ipp warden..(night shift) … my manager dion oliver is one of the bestest supporter and person I have ever met.. I have worked here for 13 months.. it has helped me and my family a lot.. now the project is almost ending..
    thankyou for the co operation.

  2. I am much pleased to inform that I worked in Kemya as Secretary under top management Executive President Mr. George Fitzpatrick and Mr. Mansour Al Kharboush. I can still feel that professional fragrance !!!!

  3. edwin t. sumang

    once again daelim industries built of one of a kind petrochemical plant and Daelim KSA makes total quality.

  4. I want to start-up one of CPU namely Humpuss Aromatic in Aceh Indonesia, we need feed stock Condensate and Off-take the final products. Thanks

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