INEOS to invest $2bn in Saudi Arabia, signs agreement with Saudi Aramco and Total.

http://www.petrotahlil.com/en/tiny/news-43006

Petrotahlil - INEOS has announced it has signed a memorandum of understanding with Saudi Aramco and Total to build three new plants as part of the Jubail 2 complex in the Kingdom of Saudi Arabia.

A new state-of-the-art 425,000 tonne acrylonitrile plant will use INEOS’ world leading technology and catalyst. It will be the first plant of its kind in the Middle East when it starts up 2025.

INEOS will also build a 400,000 tonne linear alpha olefin (LAO) plant and associated world-scale poly alpha olefin (PAO). These units will be the most energy efficient in the world when they begin production in 2025.

The location in the Kingdom of Saudi Arabia will give INEOS access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.

The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in the Kingdom.

Sir Jim Ratcliffe, chairman of INEOS, said: “This is a major milestone for INEOS that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in the Kingdom.”

The project represents a continuation of INEOS’ growth strategy following the announcement of $3.373bn investment into a new plant at Antwerp, $1.27bn investment across the UK, acquisitions in China and capacity increases in the US Gulf Coast, Alabama and Chocolate Bayou facilities.

This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world.

Paul Overment, CEO, INEOS Nitriles, said: “Global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre. This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world.”

The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally.

Joe Walton, CEO, INEOS Oligomers, said: “INEOS Oligomers is one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally.”

INEOS Nitriles is currently the world’s largest producer of acrylonitrile and acetonitrile with more than 90% of the world’s acrylonitrile using INEOS technology. It currently has four manufacturing plants, two in North America (Texas and Ohio) and two in Europe (Germany and UK). Terminals throughout the world facilitate INEOS' sales to customers in all regions globally. The INEOS Nitriles plant in Green Lake, Texas, is the largest and most efficient facility in the world.

INEOS Oligomers already has a worldwide network of LAO and PAO production plants and bulk storage locations. The business produces a comprehensive range of specialty and intermediate chemicals derived from ethylene and isobutene.

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