Saudi Arabia’s oil and gas-related projects to be dominated by petrochemicals over the next 4 years

Petrochemical projects are set to dominate oil and gas projects in Saudi Arabia in the next five years, according to a report by GlobalData. The report found that petrochemical projects will account for 61% of total projects set to commence operations in the kingdom between 2023 and 2027. The country is expected to see 44 petrochemical projects start operations during that period, with 36 being new builds and the rest expansion projects.

Saudi Arabia's focus on petrochemical projects aligns with its "liquids to chemicals" strategy, which aims to reduce reliance on the upstream sector, diversify its economy, and create employment opportunities. Major petrochemical projects in the country by 2027 include the Saudi Aramco Total Refining and Petrochemical Company Al-Jubail Ethylene Plant, which has a capacity of 1.50 mtpa and will cost $2.7 billion.

State-owned companies SABIC, Aramco, and Sinopec have recently announced plans to increase collaboration in the refinery and petrochemical sectors, further advancing the downstream sector in both Saudi Arabia and China and providing a stable market for Saudi oil and petrochemicals.

Oil & Gas Analyst at GlobalData, Himani Pant Pandey, comments that the country has "huge potential to convert its liquids into chemicals through advanced technologies and support a viable circular economy."