The new capacity is to be integrated at the existing SCPC plant in Jubail, but will be developed by a newly formed separate entity - Jubail Chevron Phillips (JCP). The legal separation is necessary to secure funding from the Saudi Industrial Development Fund for the new project because SCPC is already approaching its loan ceiling from the fund.

JCP will produce 715,000 tonnes a year (t/y) of styrene, 250,000 t/y of propylene and 405,000 t/y of motor gasoline. SCPC already produces 550,000 t/y of benzene, 220,000 t/y of cyclohexane and 370,000 t/y of motor gasoline.

SIIG, a group of about 70 local investors, is a joint venture partner of the US' Chevron Phillips Chemical Company.

JCP is understood to be in the final stages of negotiation with Saudi Aramcoto secure a feedstock agreement. It is also preparing to select a contractor for the front-end engineering and design (FEED) package, a process that is expected to be completed by the end of October. The bidders are Bechtel, Fluor Danieland Parsons International, all of the US, and the UK's Kvaerner E&C.