Saudi Aramco and SABIC have announced their selection of Yanbu, on the west coast of Saudi Arabia, as the site for the development of an integrated industrial complex to convert crude oil to chemicals (COTC).
According to reports in hydrocarbon processing, the COTC complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of chemicals and base oils annually and is expected to start operations in 2025. The complex is expected to create an estimated 30,000 direct and indirect jobs, further stimulating the Kingdom’s economic diversification efforts. By 2030 the COTC complex is expected to have 1.5% impact on the Kingdom’s Gross Domestic Product (GDP), with investments being shared equally by both companies.
The announcement strengthens the alliance between the two largest Saudi global entities and solidifies the Kingdom’s position as a global leader in chemicals by substantially increasing production and maximizing value across the entire hydrocarbons chain.