INEOS signs $2bn agreement to build three new plants in Saudi Arabia
Agreement signed with Saudi Aramco and Total to build its first ever plants in the Middle East
UK-based INEOS has a signed an MoU with Saudi Aramco and France’s Total to build three new plants as part of the Jubail 2 complex in the Kingdom. The three facilities will be involved with producing key building blocks for carbon fibre, engineering polymers and synthetic lubricants.
According to a statement from INEOS, Saudi Aramco and Total is set to construct a $5 billion Amiral petrochemical complex of which the three new INEOS plants will be a part of. Amiral will be able to supply more than $4 billion of downstream derivatives and speciality chemicals units as well.
Commenting on the MoU, Jim Ratcliffe, Chairman of INEOS 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.”
He added that through advanced downstream technology, the company will be able to add value and create further jobs in the Kingdom.
Meanwhile, the statement from INEOS also stated that through this partnership with Saudi Arabia, it will have access to competitive raw materials and energy, with well invested infrastructure.
Additionally, as part of the $2 billion agreement, INEOS will build a 425,000 tonne acrylonitrile plant; the first of its kind in the Middle East once it begins production in 2025. It will also build the most energy efficient 400,000 tonne Linear Alpha Olefin plant, by the same time.
“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,” concluded Paul Overment, CEO at INEOS Nitriles.
