Saturday 6 June 2020

Ineos inks deal with Aramco, Total for Saudi chemical plants

RIYADH, June 9, 2019

Ineos, a leading manufacturer of petrochemicals, specialty chemicals and oil products, has signed  agreements with state oil giant Saudi Aramco and French energy major Total to build three new plants in Jubail region of Saudi Arabia.

These world-scale plants, to come up in the Jubail 2 complex in Saudi Arabia, will produce the key building blocks for carbon fibre, engineering polymers and synthetic lubricants that are pivotal to economic growth in the region, said a statement from Ineos.

As per the MoU, Saudi Aramco and Total will construct a $5-billion petrochemical complex (Project Amiral) which will supply more than $4 billion of downstream derivatives and speciality chemicals units; the three Ineos plants will be part of them.

A leading UK multinational chemicals company headquartered in London, Ineos has 34 businesses, with a production network spanning 171 manufacturing facilities in 24 countries.

Ineos Nitriles, a part of Ineos Group Holdings, is the world’s largest producer of acrylonitrile and acetonitrile and leading supplier of nitrile-based chemicals.

A new state-of-the-art 425,000-tonne acrylonitrile plant, will use Ineos’ world leading technology and catalyst. It will be the first plant-of-its-kind in the Middle East when it starts up 2025.

Also the company is planning to build a 400,000-tonne LinearAlphaOlefin (LAO) plant and associated world-scale PolyAlphaOlefin (PAO). These units will be the most energy efficient in the world when they begin production in 2025.

The British chemical giant said the Saudi location will give it access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.

On the new deals, Chairman Jim Ratcliffe said: "This is a major milestone for Ineos that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total."

"We are bringing advanced downstream technology which will add value and create further jobs in the kingdom," he stated.

The project represents a continuation of Ineos’ growth strategy following the announcement of €3- billion (   ) investment into a new plant at Antwerp, £1-billion (    ) investment across the UK, acquisitions in China and capacity boosts in the US Gulf Coast, Alabama and Chocolate Bayou facilities.

Ineos Nitriles CEO Paul Overment said the global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre.

"This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world," he stated.

Ineos Oligomers CEO Joe Walton said: "We are one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally."

Ineos Oligomers already has a worldwide network of LAO and PAO production plants and bulk storage locations.

"The business produces a comprehensive range of speciality and intermediate chemicals derived from ethylene and isobutene," he added.-TradeArabia News Service


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