The planned complex is set to comprise three units, including a petrochemicals complex with an ethylene cracker, polypropylene, aromatics and possibly styrol facilities. A second unit will be earmarked for methanol production, while the third plant could produce ammonia.

Under the preliminary agreement signed in February, Linde and PMG will jointly carry out a pre-feasibility study for the scheme. Sources close to the project say the companies have yet to secure a feedstock agreement for the project, which in turn will determine the composition and capacities of the complex. Negotiations between Saudi Aramcoand the Linde/PMG team about the potential supply and amount of feedstock are under way.

According to the MoU, Linde will be the preferred contractor if the project takes off. Talks have also started on raising the required financing for the scheme.