According to the UK-based leading data and analytics company GlobalData, petrochemical projects are expected to drive the commencement of upcoming projects across the oil and gas value chain in Saudi Arabia, accounting for 61 percent of all projects expected to start up by 2025.
GlobalData’s recent report ‘Middle East Oil and Gas Projects Outlook to 2025 – Development Stage, Capacity, Capex and Contractor Details of All New Build and Expansion Projects’ has stated that the new build projects dominate with 84 percent, while the rest are expansion projects.
The report has revealed that the petrochemical projects will be the highest with 50, followed by midstream with 18, the refinery at eight, and upstream (fields) at six.
Furthermore, GlobalData pointed out that among the forthcoming petrochemical projects in the kingdom, the Saudi Aramco Total Refining and Petrochemical Company’s Al Jubail Ethylene Plant is a major project with a capacity of 1.5 million tonnes per annum (mtpa). The $1.6 billion worth plant provides feedstock to other petrochemical and specialty companies in the Jubail industrial city.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData said, “Saudi Arabia’s aggressive investments in the petrochemicals sector is part of its 2030 vision plan, where the country aims to reduce its dependence on the upstream sector and diversify into other segments. The state-owned company, Saudi Aramco, already acquired 70 percent stake in the country’s petrochemical giant, Saudi Basic Industries (SABIC), last year for approximately $69 billion as part of its strategy to diversify from the upstream sector.”
GlobalData has noted that 18 midstream projects are scheduled to begin operations in Saudi Arabia between 2021 and 2025. “Some of the key midstream projects expected to start operations by 2025 include the Tanajib gas processing plant with a capacity of 2.8 billion cubic feet per day and a project cost of $3.5billion, and Hawiyah Unayzah underground gas storage site costing $2.1 billion,” as per the report.
“In the upstream (fields) segment, Jafurah is a key upstream production project, which is set to begin operations with a total production capacity of 916.7 thousand barrels of oil equivalent per day. The project, considered as the largest unconventional gas development in Saudi Arabia, will provide additional gas for domestic consumption and valuable feedstock to petchem projects,” Mr. Tejomoortula concluded.
