The Saudi Arabian General Investment Authority (SAGIA) has announced more than $2bn worth of new petrochemical investment deals, which include a new polyacrylamide plant and an ammonia project in Jubail.
The deals were signed in Riyadh between the SAGIA and five chemical majors, namely, German BASF, Anglo-Dutch Shell, Japanese Mitsui & Co, French SNF and Dutch Advanced Metallurgical Group (AMG).
SAGIA and Japanese firm Mitsui & Co., signed an MoU aimed at setting up an ammonia commercial production project in Jubail with an estimated capacity of 1 million tons per annum, using a highly efficient and environmentally friendly manufacturing process.
The two sides also agreed to jointly develop a specialty chemicals downstream opportunity, according to a post on Twitter by SAGIA.
Shell signed a memorandum of understanding (MoU) with SAGIA to study the potential for building residue upgrading catalyst manufacturing facility in Jubail, the Anglo-Dutch energy giant said in a separate statement on 21 November.
Residue upgrading catalysts are critical in helping refineries upgrade the bottom of the oil barrel into more valuable products, including generation of petrochemicals feedstocks.
Tatsuo Yasunaga, president and CEO of Mitsui & Co., said: “Mitsui aims to realize an ammonia production project in Jubail, using a highly efficient and environment-friendly manufacturing technology and concept, which may include carbon capture and storage.”
President of Shell Catalysts and Technologies, Andy Gosse, said: “This agreement with SAGIA and AMG reflects Shell’s interest in growing its presence in Saudi Arabia and serving its clients locally and regionally through a world-class end-to-end business solution utilizing our extensive expertise in catalyst technologies.”
In addition, SAGIA signed an MoU with German chemicals major BASF to evaluate and assess opportunities in Saudi Arabia, and another MoU with SNF to evaluate the establishment of a polyacrylamide plant in Jubail.
The Saudi state foreign investment license provider also signed a $400m partnership deal with AMG to assess the feasibility of building a facility to reclaim and recycle valuable metals in the Kingdom.
Source: Arab News