Saudi Aramco and the US’s Dow Chemical Company have said that their $15bn-plus petrochemicals joint venture is moving ahead.
The plant will be centred around an ethylene facility that will be capable of producing 1.3 million tonnes-a-year (t/y) of ethylene and 400,000-t/y of propylene.
MEED reported in March that the partners were considering a site change for the complex and in April confirmed the move to Jubail Industrial City 2 in Saudi Arabia’s Eastern Province as part of changes to $30bn of downstream projects in the kingdom. The biggest impact of the decision was the cancellation of Aramco’s plans for an $8bn expansion of the existing Ras Tanura refinery.
The move was part of a wider review of the project, covering scope and construction costs. To date, design and planning costs have topped $700m.
Aramco and Dow did not issue a statement saying that construction work will start on the project in 2012, as reported by MEED on 12 September.