Saudi Arabia plans US$6bln investment in petrochemical hubs

17-Apr-06

of Jubail and Yanbu at an investment of US$6.1bln (23 billion riyals). Majority of the capital will be floated for public subscription, in coordination with the Capital Market Authority. The Jubail complex will be set up with partners from Europe, Japan, USA and Saudi Arabia, and will have a number of new petrochemical plants and products such as vinyl ethylene vinegar, methyl methacrylates, poly methyl methacrylates, acrylonitrile, poly acrylonitrile, carbon fibers, sodium cyanide, polypropylene and high density polyethylene. Allocation of necessary amounts of ethane, propane, butane and natural gas required for the two giant projects has been approved. The Yanbu project will also float part of its capital in an IPO and would have units for new petrochemical products including poly butylenes. A research center will be established as part of the project to develop new products the plants output.