LyondellBasell, Sipchem Secure Feedstock Allocation For Joint Saudi Project 

KUALA LUMPUR, Feb 27 (Bernama) -- LyondellBasell (LYB), in collaboration with Sipchem, has secured a feedstock allocation from Saudi Arabia’s Ministry of Energy to support a joint feasibility study for a world-scale mixed-feed cracker complex combined with a diversified derivative portfolio.

LyondellBasell chief executive officer (CEO), Peter Vanacker emphasised the critical role of the feedstock allocation in advancing the collaboration and reiterated the company’s long-term commitment to the Kingdom’s expanding economy and innovation opportunities.

Meanwhile, Sipchem CEO, Abdullah Al-Saadoon expressed the strategic importance of the partnership for sustainable growth, aiming to strengthen both companies' global and local positions in the petrochemical market, and also acknowledged the Ministry of Energy’s support in enabling these shared goals.

According to a statement, the study will evaluate the viability and optimal structure for the project, which will be pursued on a 60 per cent Sipchem and 40 per cent LYB ownership basis.

The allocation lays the foundation for both parties to define the technical, financial and commercial configuration for the project. The joint project aims to produce petrochemical products and derivatives for both local and global markets, potentially creating thousands of jobs in Saudi Arabia.

With advantageous feedstocks, world-scale facilities, and proximity to key markets, the project is poised to generate significant value. The project will benefit from LYB’s technologies to produce differentiated grades of polyethylene and polypropylene, including the Catalloy product line of elastomeric polyolefins.

Both companies will also explore carbon management solutions, including low-emission technologies, aligning with their commitment to the Kingdom's net-zero goals.

-- BERNAMA