UK energy firm Ineos has announced an investment of £1.5bn in a petrochemical plant that is being developed by Saudi Aramco and France’s Total in Saudi Arabia.
The investment will see Ineos constructing three new plants that will be part of the $5bn (£3.9bn) petrochemical complex in The Kingdom of Saudi Arabia.
Saudi Aramco and Total are preparing the construction of the petrochemical complex that will supply over $4bn (£3.1bn) of downstream derivatives and speciality chemicals units.
Ineos chairman Jim Ratcliffe said: “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.”
As part of the investment, the company will build a new 425,000 tonne acrylonitrile plant, which will be the first plant of its kind in the Middle East when it begins operations in 2025.
Ineos will also build a 400,000 tonne LinearAlphaOlefin (LAO) plant and associated PolyAlphaOlefin (PAO), which are expected to start production in 2025.
The investment will enable Ineos access to competitive raw materials and energy
The location of the petrochemical complex in Saudi Arabia is expected to allow Ineos access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.
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.”
The investment is a continuation of the company’s growth strategy, following an investment of £2.7bn into a new plant at Antwerp, £1bn investment across the UK, acquisitions in China and capacity increases in the US Gulf Coast, Alabama and Chocolate Bayou facilities.
