SABIC and Shell to invest in and beyond Saudi Arabia
In November 2012, have decided to work on Saudi Basic Industries Corporation (SABIC) and Shell expansion opportunities of their joint venture Saudi Petrochemical Company (Sadaf).
These expansion ambitions are not limited to the sole
Saudi Arabia but should also aim at increasing positions in overseas markets.
Sadaf is a 50/50 joint venture between SABIC and Shell.
1980 to begin production in 1984, Sadaf is the oldest . petrochemical joint venture in Saudi Arabia
Through Sadaf, operates only one complex located in and SABIC Shell Al Jubail Industrial Zone to benefit from the most competitive feedstock available in the region.
Sadaf produces 4.7 million t/y of including crude industrial petrochemical products ethanol, ethylene, ethylene dichloride (EDC), caustic soda, methyl tertiary butyl ether (MTBE), styrene monomer.
Based along the
Coast of the Eastern Province on the Arabian Gulf, Sadaf export most of its production to the Asia Pacific region.
few years emerged among the SABIC in the market leaders petrochemical industry especially after the acquisitions of the and the chemical activities of DSM in Europe plastics division from GE.
Today is a SABIC world key player in polyethylene, polypropylene, glycols, methanol, fertilizers and advanced thermoplastics.
As part of its
Strategy 2020, intents to expand its SABIC through market leadership two dimensions:
– Enlarge its
products portfolio with higher added value and petrochemicals innovative plastics
– Consolidate its global footprint such as in
China in joint venture with Sinopec
side, the Shell is the Chemicals branch sixth largest chemical company in the world by the revenues with one of the longest list of proprietary processes and patents.
On the same month of
November, confirmed its Shell strategy to develop a sustainable and profitable growth through an integrated business model . upstream– downstream
This position, aligned on the
, opens the opportunity to national oil companies , as Shell to take advantage of the low prices of the gas specialist, to increase its added value along the natural gas . downstream transformation SABIC and Shell plan polyols and SMPO in Al Jubail
Coming from different horizons,
SABIC and come to have Shell similar goals and complementary interests to develop their joint venture:
– For , to get access to SABIC technologies catalog and experience on a global base. Shell
– For to team up with a reliable partner to invest in large projects and to enjoy competitive supply on oil and Shell whatever would happen in the rest of the world. gas
In this context the
expansion of Sadaf joint venture is a perfect answer to SABIC and respective goals. Shell
As a first step, SABIC and are panning to develop the production of Shell polyols and styrene monomer propylene oxide (SMPO).
maximize their competitive advantage, are planning this expansion in the and SABIC Shell actual Sadaf Al Jubail facilities.
polyols and SMPO production units should be the first ones in the Middle East and would help Saudi Arabia to reduce its imports of these added value chemicals building blocks.
Polyols is the critical feedstock to produce. polyurethane
Together with the
SMTO, the development of in polyurethane production Saudi Arabia will meet the local and global demand for all kind of applications in the building and construction, automotive, furniture, packaging, insulations.
From this announcement,
SABIC and are proceeding to the Shell of this feasibility studies Sadaf expansion to produce Polyols and styrene monomer propylene oxide (SMPO) in their Al Jubail facilities as first step before going global.
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