Saudi Arabia's Ministry of Energy has awarded a crucial feedstock allocation to a joint venture between Saudi International Petrochemical Company (Sipchem) and LyondellBasell (LYB). This allocation paves the way for a feasibility study of a world-scale mixed feed cracker complex and a diversified derivative portfolio, marking a pivotal step towards a major industrial development in the Kingdom.

The proposed project, structured on a 60% (Sipchem) and 40% (LYB) ownership basis, aims to establish a cutting-edge petrochemical facility that will cater to both domestic and international markets. The feedstock allocation granted by the Ministry of Energy is essential, as it provides the foundation for Sipchem and LyondellBasell to meticulously define the technical, financial, and commercial configurations necessary for the project's success.

The ambitious project promises to leverage Saudi Arabia's cost-advantaged feedstocks, world-scale assets, and strategic proximity to key global markets. By integrating LyondellBasell's advanced technologies, particularly in the production of differentiated polyethylene and polypropylene grades, including the highly specialized Catalloy product line of elastomeric polyolefins, the venture is poised to deliver high-value petrochemical products.

Beyond economic benefits, the project is expected to generate thousands of local job opportunities, contributing significantly to the Kingdom's industrial growth and diversification efforts. In alignment with Saudi Arabia's Vision 2030, which emphasizes sustainable development, Sipchem and LyondellBasell will also collaborate on exploring carbon management solutions. This includes the implementation of low-emission technologies to support both companies' and the Kingdom's ambitious net-zero emissions targets.

Abdullah Al-Saadoon, Sipchem's chief executive officer, emphasized the strategic significance of the partnership with LyondellBasell, stating, "Our partnership with LyondellBasell marks an important milestone in our pursuit of ambitious goals for sustainable growth and the strengthening of our position within the petrochemical market locally and globally. Through this collaboration, we will leverage the latest cutting-edge, energy-efficient technologies, significantly contributing to our environmental objectives and enhancing the sustainability of our operations." He further expressed gratitude to the Ministry of Energy for its unwavering support, underscoring its instrumental role in enabling the companies to achieve their shared goals.

Peter Vanacker, LyondellBasell's chief executive officer, echoed this sentiment, highlighting the feedstock allocation as a "vital step" in the collaboration with Sipchem. "As we move forward with our joint study, with a long-term partnership in mind, we further strengthen our commitment to Saudi Arabia," Vanacker said. He also acknowledged the Ministry of Energy's support and collaboration, expressing enthusiasm for contributing to the Kingdom's thriving economy and its ongoing development and innovation.