Shell and Sabic (Saudi Basic Industries Corp. ) to construct Jubail petrochemical plant
Shell Oil Co.'s Pecten Arabian Ltd. affiliate and Saudi Basic Industries Corp. have agreed to build a $3 billion petrochemical complex at Jubail, Saudi Arabia; the final documents will be signed in late Sept. 1980. The partners will invest about $400 million each in the joint venture, with Saudi public investment funds and commercial banks providing the balance of the funding. Shell will have the right to purchase Saudi crude oil on a long-term basis, as well as some chemical raw materials; the volume of crude made available will be determined by a formula that the Saudis are now developing. One plan under discussion would offer firms options to buy 500 bbl/day of Saudi crude for each $1 million of their investment. The feed for the new plant will be methane and ethane from associated gas now being flared. Product exports are scheduled to begin in late 1985. Product capacities will include (in thousands of metric tons/yr): ethane, 656; chlorine, 333; caustic soda, 377; ethylene dichloride, 454; ethyl benzene, 327; styrene, 295; and crude industrial ethanol, 281. Ships, terminals, and other infrastructure facilities are included in the agreement.
- OSTI ID:
- 6415484
- Journal Information:
- Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 78:28; ISSN OIGJA
- Country of Publication:
- United States
- Language:
- English
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