Saudi Arabia plans to set up $10 billion oil refinery in Gwadar by year-end

Saudi Arabia plans to set up a $10 billion oil refinery in Gwadar port by year end, Arab News reported on Monday.

Director General of Gwadar Development Authority (GDA) Shahzeb Khan Kakar said, “The planning for the mega oil city which will host an Aramco refinery and petrochemical complex is in progress, and we will take six to seven months to complete the masterplan.”

He added that fisheries, an oil refinery, petrochemical complexes, a shipyard, the tourism industry, and most importantly the operations of Gwadar port, will all generate huge incomes and increase per capita income. “This can be achieved by providing electricity, protection and a sound management system.”

The proposed mega oil city will be developed on 88,000 acres of land in the Gwadar district of the southwestern Balochistan province to refine and process petroleum products mainly imported from the Gulf region, for local and regional consumption.

Saudi Energy Khalid al-Falih said that Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor.

He said Crown Prince Mohammad bin Salman would visit Pakistan in February to sign the agreement. The minister added that Saudi Arabia would also invest in other sectors.

Speaking on the matter, Petroleum Minister Ghulam Sarwar Khan said: “With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC.”

China will provide $60 billion as part of the China Pakistan Economic Corridor (CPEC) that involves building power stations, major highways, new and upgraded railways and higher capacity ports, to help turn Pakistan into a major overland route linking western China to the world.

Source: www.brecorder.com

SABIC, Plastic Energy to construct commercial chemical recycling unit in the Netherlands

SABIC (Saudi Basic Industries Corp.), Riyadh, Saudi Arabia, and Plastic Energy, a U.K.-based company that is pioneering chemical plastics recycling, have announced plans to start engineering and constructing a commercial unit in the Netherlands that will produce SABIC’s certified circular polymers, part of its Trucircle portfolio, which are made from mixed and used plastics.

According to a news release from Plastic Energy, the new unit will be based in Geleen, the Netherlands, and is expected to be operational in the second half of 2022. The project is a 50/50 joint venture called “SPEAR” (SABIC Plastic Energy Advanced Recycling BV) and is being executed with a top sector energy subsidy from the Ministry of Economic Affairs in the Netherlands.

Plastic Energy says SABIC has worked with it and other leading customers and converters to produce and commercialize certified circular polymers since 2019. The new unit will enable SABIC to scale up production of certified circular polymers to provide customers with more access to sustainable materials.

“Advancements in this pioneering project take us one step closer to driving the change needed to become a circular global industry,” says Fahad Al Swailem, vice president of Polyethylene and Sales, at SABIC. “We have overcome significant external, global challenges to reach this important milestone and remain fully committed to closing the loop on used plastic. We are continuing to collaborate on an unprecedented level with our partners upstream and downstream to achieve this.”

“It has been an exciting journey in making our vision of building advanced recycling plants come to life, and we are delighted to announce the construction of this new facility with SABIC,” says Carlos Monreal, founder and CEO of Plastic Energy. “We have worked jointly with SABIC towards our common goal of making plastics more sustainable and moving towards a more circular economy for plastics.”

According to Plastic Energy, SABIC’s certified circular polymers are produced using Plastic Energy’s advanced recycling technology to convert low-quality, mixed plastics into Tacoil. SABIC will use the Tacoil produced in the new commercial unit in its production process as an alternative to traditional fossil materials.

Source: www.recyclingtoday.com

Sabic Becomes The 2nd Most Valuable Brand In The Chemicals Industry

SABIC has become the world’s second most valuable brand in the chemicals industry for the first time, and it has also cemented its place among the top 500 most valuable global brands. The rankings were confirmed in the 2021 Chemicals 25 and Global 500 reports published by Brand Finance, a world-leading independent brand valuation consultancy.

Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “We are proud of our improved ranking. It is a significant step in our mission to become the preferred world leader in chemicals and reflects the ever-growing positive perception of SABIC among our customers and other stakeholders. It is a clear confirmation of the strategy we have defined to position SABIC as a leading global chemical brand.

Al-Benyan added: “Building a strong global brand is integral to our core objectives and aligns with our growth ambitions. It enables our business strategy and enhances our resilience. Our brand is important to us and our customers and stakeholders, and we will remain dedicated to delivering our Chemistry that Matters™.”

This year the Chemicals 25 report confirmed SABIC’s brand value to be US$ 4.017 billion, which represents a marginal softening versus 2020. The overall chemicals industry saw an eight percent decline in total brand value from the previous year, primarily due to the downturn in the global economy. In 2020, SABIC entered the second phase of its global brand campaign, further building on its successful launch in 2019. The campaign aligns with the company’s 2025 strategy and connects global audiences with the SABIC collaborations that enable sustainable solutions to some of the world’s most pressing challenges.

Brand Finance utilizes a bespoke methodology to determine the brand value of a company. Factors considered include stakeholder familiarity and satisfaction along with forecasted business performance.

Source: www.sabic.com

Saudi AGIC signs offtake agreements for new PP project

Saudi petrochemical producer Advanced Petrochemical has signed through its subsidiary Advanced Global Investment (AGIC) offtake sales agreements of polypropylene with traders Vinmar, Tricon and Mitsubishi. These will last until 31 December 2028, with volumes to be delivered from its planned Advanced Polyolefins (APOC) plant in Jubail, Saudi Arabia.

The PP offtake agreements total 620,000 t/yr, with Vinmar and Tricon procuring 250,000 t/yr each, while Mitsubishi will take 120,000 t/yr. The agreement will take effect on the date of commercial operations commencing at APOC, which is targeted for the second half of 2024. No details were known on the underlying pricing basis of the offtake agreements.

APOC’s PP plant will have a nameplate capacity of 800,000 t/yr, for which feedstock propylene would be supplied from a planned, integrated propane dehydrogenation unit. The 620,000 t/yr offtake agreements indicate that 77.5pc of the upcoming PP plant’s nameplate capacity has been committed.

APOC is a joint venture between AGIC and South Korea’s SK Gas Petrochemical (SKGP), with the shareholding split at 85pc and 15pc respectively between the two entities.

Source: www.argusmedia.com

UAE’s Mubadala Petroleum signs Red Sea oil exploration deal with Egypt

CAIRO: The UAE’s Mubadala Petroleum Company has signed an agreement with Egypt to explore for oil and gas in the Red Sea.

The agreement, signed by Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla, allows the company to explore in a 3,084 square kilometer area of the Red Sea and was a result of a bidding round in 2019.

It will own 27 percent of the stake as part of the agreement, while Shell will own 63 percent. Egypt’s Tharwa Petroleum Company owns the remaining 10 percent.

The agreement refers to an area known as Sector 4, located in the north of the Red Sea in an area adjacent to the Gulf of Suez Basin, which is rich in natural resources.

Parties will commit to conducting exploration studies in this sector and collecting seismic data for the area, using three-dimensional techniques, during the first three years of the exploration phase.

“The addition of Sector 4 in the Red Sea represents a new extension of our operations in Egypt, while providing a valuable opportunity to expand our activities, and by working with a strategic partner such as Shell,” said Mubadala Petroleum CEO Bakheet Al Katheeri. “The search and exploration operations in this sector, if successful, will support our strategy of extracting and manufacturing hydrocarbons, in order to contribute to supporting the stability and expansion of the Egyptian market, while providing growth opportunities for our operations in the country.”

Mubadala Petroleum owns a 10 percent stake in the offshore Shurooq gas field concession that includes the Zohr natural gas field, in addition to 20 percent in the concession area of Noor Gas Company. Both are located in the Mediterranean Sea off the coast of Egypt.

Source: www.arabnews.com

Sabic And Plastic Energy Set To Start Construction Of Pioneering Advanced Recycling Unit To Increase Production Of Certified Circular Polymers

  • SABIC and Plastic Energy are set to start construction of world’s first commercial unit to significantly upscale production of certified circular polymers derived from used plastic
  • The engineering and construction stage brings this pioneering project one step closer to beginning operations in Geleen, The Netherlands
  • Project demonstrates Plastic Energy and SABIC’s ongoing commitment to drive towards a circular economy for plastics by increasing the availability of more sustainable products

In another significant contribution towards the development of a circular economy for plastics, SABIC and Plastic Energy are set to commence construction on the first commercial unit to produce its flagship certified circular polymers, part of the TRUCIRCLE™ portfolio, which are made from the upcycling of mixed and used plastic.

SABIC, a global leader in diversified chemicals, along with partner Plastic Energy, a pioneer in chemical plastics recycling, are set to start the construction phase for the unit, which will be based in Geleen, the Netherlands and is expected to become operational in the second half of 2022. The project will be realized under a 50-50 joint venture called SPEAR (SABIC Plastic Energy Advanced Recycling BV) and is being executed with a Top Sector Energy Subsidy from the Ministry of Economic Affairs in the Netherlands.

As part of the project’s market foundation stage, SABIC has worked together with Plastic Energy and leading customers and converters to produce and commercialise certified circular polymers since early 2019. The new unit will enable SABIC to significantly upscale the production of certified circular polymers to provide customers with greater access to sustainable materials which have been recycled, repurposed and produced in a way that can help protect our planet’s natural resources, whilst acting as a drop-in solution.

‘Advancements in this pioneering project take us one step closer to driving the change needed to become a circular global industry,’ said Fahad Al Swailem, Vice President, PE & Sales at SABIC. ‘We have overcome significant external, global challenges to reach this important milestone and remain fully committed to closing the loop on used plastic. We are continuing to collaborate on an unprecedented level with our partners upstream and downstream to achieve this.’

‘It has been an exciting journey in making our vision of building advanced recycling plants come to life, and we are delighted to announce the construction of this new facility with SABIC,’ said Carlos Monreal, Founder and CEO of Plastic Energy. ‘We have worked jointly with SABIC towards our common goal of making plastics more sustainable and moving towards a more circular economy for plastics.”

SABIC’s certified circular polymers are produced using Plastic Energy’s advanced recycling technology to convert low quality, mixed, and used plastic, otherwise destined for incineration or landfill, into TACOIL. The TACOIL produced in the new commercial unit will be used by SABIC in their production process as an alternative to traditional fossil materials to create new circular polymers.

The circular polymers form part of SABIC’s TRUCIRCLE portfolio and services for circular innovations. Launched in 2019, the TRUCIRCLE portfolio is a considerable milestone on the journey towards closing the loop and creating a circular economy for plastics and intends to provide manufacturers with access to more sustainable materials. The TRUCIRCLE portfolio spans design for recyclability, mechanically recycled products, certified circular products from feedstock recycling of used plastic and certified renewables products from bio-based feedstock.

Source: www.sabic.com

Nusaned Investment™ Signs A Deal To Invest In A Local Reverse Engineering Company

Nusaned investment™, an investment company fully owned by SABIC with a mandate to invest in industrial SMEs and increase local content in the Kingdom’s industrial sector, signed an investment deal with DarTec Engineering Consulting.

DarTec, which was established in 2012, provides advanced reverse engineering services to important industrial organizations in KSA to enable mechanical spare part localization.
The deal between Nusaned Investment™, through Nusaned Fund managed by Albilad Capital, and DarTec will further strengthen the position of the company and accelerate its development as well as its regional and domestic outreach.

This new niche in the Saudi industrial space will get a boost and local content in the engineering services and spare parts market will increase with this agreement. It will also help satisfy the critical industrial spare parts demand by local suppliers and reach a state of self-sufficiency in key sectors like power plants, desalination, petrochemicals and defense.

The first step toward digital transformation and adapting Industry 4.0 technologies is by converting physical assets into digital, as DarTec service offering includes reverse engineering, 3D scanning, laboratory management and spare part prototyping.

“Investing in DarTec and partnering with such experienced founders fulfills Nusaned Investment’s mandate of investing in leading industrial SMEs in the Kingdom. The services of DarTec will help the industrial sector to localize spare parts supply chain, shorten lead time, reduce spare parts cost and develop local talent in new engineering sector,” said Faisal Al-Bahair, VP, Local Content & Business Development Unit and CEO of Nusaned Investment™.

DarTec’s co-founders Eng. Ayman AlNouri and Dr. Hashim AlZain said, “DarTec Engineering looks forward to working with existing and emerging local manufacturing facilities to maximize the utilization of their assets, which will grow into becoming the engine that would transition the Kingdom from a consumer-based economy to a knowledge-based one by 2030”.

Source: www.sabic.com

Aramco awards major Long-Term Agreements to eight companies for its oil and gas brownfield projects

  • Eight companies have been awarded Long-Term Agreements (LTAs). These agreements are for a six-year base period and extendable for an additional six years.
  • The LTAs will significantly support growth in the local business community and help develop strong and sustainable domestic Engineering Procurement Construction (EPC) entities for the longer term.
  • Each LTA will support growth in employment and the development of the workforce in Saudi Arabia.

Aramco has today announced a new contracting strategy for the Company’s oil and gas brownfield and plant upgrade projects. The strategy focuses on establishing new businesses and developing partnerships based on sustainability and new technologies via Aramco’s giant projects by awarding long-term contracts to reputable and experienced contractors to improve cost efficiency and the quality and safety of the projects.

Following Aramco’s approval of the new contracting strategy, contractors’ companies were invited to submit their proposals, and after a thorough evaluation process, eight companies have been selected to carry out the work:

  1. Consortium of Nasser Saeed Al-Hajri And Contracting /Samsung EPC Co. Ltd.
  2. Daelim Saudi Arabia Co. LTD.
  3. Engineering for The Petroleum and Process Industries (Enppi) Branch.
  4. GS Construction Arabia Co. Ltd.
  5. Snamprogetti Engineering and Contracting Co. Ltd. (Saipem).
  6. JGC Gulf Engineering Co. Ltd.
  7. Branch of Technip Italy S.P.A.
  8. Branch of Hyundai Engineering and Construction Co. LTD.

The scope of the LTAs includes engineering, procurement, construction, start-up and pre-commissioning of each project, as well as the installation of the upgraded facilities in the designated operating areas. The contracts are established for a period of six years with an option to exercise another six years extension.

In addition, the contracts are developed with a special emphasis on improving Saudization, local content and supply chains through Aramco’s In-Kingdom Total Value Add (IKTVA) program, helping Aramco to meet its IKTVA targets. The contracts mandate a minimum commitment to use 39% local content and supply chains initially, increasing to a 60% commitment within six years.

Source: www.aramco.com

Sabic Launches Innovative Pharmaceutical Grades For Healthcare Applications

SABIC, a global leader in the chemical industry, has developed and launched two specialty grades for use in healthcare and hygiene applications as part of its commitment to meet customers’ needs through innovative solutions.

The company’s innovative polyethylene glycol SAPEG 400/600 PH are intermediate products to produce liquid pharma preparations like syrup, and personal care products like cosmetics, creams, toothpaste and soap. The pharmaceutical grades have obtained all necessary approvals and certificates required by regulatory bodies in the EU and the US.

“These new products show a true innovation toward diversifying our downstream industries as part of SABIC Strategy. This achievement is the result of collaborative work from all stakeholders, particularly T&I, Manufacturing and global regulators,” said Abdulrahman Al-Fageeh, EVP, Petrochemicals.

The new product launch in local and global markets is another major enhancement of SABIC’s healthcare and hygiene portfolio. It is also part of the company’s commitment to provide proper technical support to all customers across various markets. Moreover, the products are expected to create new business opportunities in the pharmaceutical segment.

Source: www.sabic.com

SABIC and Saudi Aramco to develop technologies to convert oil

The two global energy and petrochemical industry giants in Saudi Arabia are entering a new phase of the innovation and development challenge in their field. The Saudi Basic Industries Corporation (SABIC) and Saudi  have announced their past efforts to expand the scope of the oil-to-chemicals project, by developing technologies for converting petroleum liquids into chemicals from During the integration in some of the joint ventures of the two companies around the world.

According to a statement by “SABIC” on the website of the financial market company “Tadawul”, the growth plans of the two companies were taken into consideration, and all opportunities available for integration in future projects were discussed to maximize the economic benefit of the two companies, and to study all the optimal technical options for developing the scope of project business and assessing market risks. The two parties intend to re-evaluate the work of an industrial complex development project with Saudi Aramco to convert crude oil into chemicals, by studying the integration of Saudi Aramco refineries in Yanbu with an industrial complex containing a multi-feed olefins cracker and other derivatives units.

“SABIC” stressed its commitment with “Saudi Aramco” to continue developing technologies for converting crude oil to chemicals, which would contribute to increasing cost efficiency and opportunities to create value in the energy and petrochemical industry on a larger scale. In mid-2017, SABIC signed a preliminary agreement with Saudi Aramco, which includes conducting a joint study related to establishing an industrial complex in Saudi Arabia to convert crude oil into chemicals.

Source: https://alkhaleejtoday.co/