The $20bn Sadara Chemical Company petrochemicals complex being built at Jubail in the Eastern Province of Saudi Arabia is one of the most ambitious single-phase projects ever undertaken in the Middle East.

The 50:50 joint venture between Saudi Aramco and the US’ Dow Chemical awarded contracts in 2011 and 2012, and the project is now well into the execution phase. More than 40,000 contractors are expected to participate in Sadara’s construction.

According to Middle East projects tracker MEED Projects, the construction phase is progressing without any major delays or problems.

The complex is being built at Jubail Industrial City 2, the new extension to the region’s largest industrial city, and will have a capacity of about 8 million tonnes a year (t/y) when complete.

The intention is to add several speciality chemicals to the kingdom’s petrochemicals mix. The facility will primarily drive special conversion industries aimed at lengthening the value chain of Saudi Arabia’s hydrocarbons sector, while at the same time creating hundreds of thousands of new jobs.

Initial setbacks, including a site change from the original location of Ras Tanura, have all been resolved, and Aramco and Dow have managed to achieve value for money, securing deals at low prices with some of the most capable contractors in the world.

In addition to the complex itself, a specialist conversion park will be built adjacent to the site to attract companies that want to use the offtake from the plant.

Dow has already committed to the park and is planning to build a $100m facility that will produce its patented FilmTec reverse osmosis elements, used in desalination.

The Sadara project is Aramco’s first major foray into the petrochemicals industry on the eastern coast of the kingdom, and the oil giant is determined that there will be no problems. It is extremely ambitious, but Aramco is eager to ensure it becomes a massive success.