Sadara Chemical Company's facility in Jubail, Saudi Arabia
Aramco’s domestic petchems path remains bumpy
The firm still faces challenges balancing economics with politics
Ethane scarcity, which forced the domestic Saudi petrochemicals industry to increasingly switch to naphtha feedstock, was a key factor in upstream heavyweight Saudi Aramco beginning to take the lead in the expansion of local petchems production in the second half of last decade. The completion of the 3mn t/yr Sadara Chemical Company plant, in partnership with the US’ Dow Chemicals, at Jubail in 2017 cemented Aramco’s pivotal role. But, just as with its international plans, the expansion process at home has not been entirely smooth. Aramco and its merger partner Sabic formally cancelled a first-ever crude-to-chemicals plant—a putative landmark deliberately symbolic of the desire to convert an
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
