Saudi Arabia to cooperate with Iran in petrochemicals

Saudi Arabian Ambassador to Tehran emphasized the existence of common fields for cooperation between the petrochemical industries of Iran and the kingdom and said. He said, “We are ready to expand cooperation with the petrochemical industry of Iran.”

Abdullah bin Saud al-Anzi made these remarks on Monday on the sidelines of a visit to the 17th International Exhibition of Plastic, Rubber, Machinery, and Equipment (IRAN PLAST 2023), Shana reported.

During his visit to the booth of the National Petrochemical Company (NPC) at the exhibition, he held talks with the NPC managers.

He said, “There are common areas of cooperation between SABIC (Saudi Arabia's Basic Industries Corporation is a Saudi chemical manufacturing company) and Iranian petrochemical companies, and we hope to see meetings held soon with the coordination of the National Petrochemical Company.”

QatarEnergy-Chevron Phillips US$6 billion deal

According to Reuters, QatarEnergy announced on Sunday the final investment decision on the US$6 billion Ras Laffan Petrochemicals Complex with partner Chevron Pillips Chemical which is expected to be the largest of its kind in the Middle East.

The complex, expected to begin production in 2026, includes an ethane cracker with a capacity of 2.1 million tons of ethylene per year.

The integrated complex will also include two high density polyethylene derivative units with a total production capacity of 1.7 million tons per year, QatarEnergy, Chief Saad al-Kaabi Kaabi said.

Originally announced in 2019, the project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.

State-run QatarEnergy will hold a 70% stake in the venture with Chevron Phillips Chemicals holding 30% under the agreement signed on Sunday.

“This marks QatarEnergy's largest investment ever in Qatar's petrochemical sector," Kaabi said.

The complex, located in Ras Laffan industrial city, is an important milestone in Qatar's downstream expansion strategy, he said.

Qatar, one of the world's top producers of liquefied natural gas (LNG), will see its ethylene production capacity double on the back of the new complex. Local polymer production will also increase from 2.6 million to 4 million tons per annum.

The Gulf state, one of the most influential global players in the world's LNG markets, is expanding its North Field gas field that will see its liquefaction capacity increase from 77 million tons per annum to 126 million tons by 2027.