Project Profile
Value: US$3 billion capital expenditure
Location: Al-Jubail Industrial Zone, Saudi Arabia
Capacity:
Start-up year: 2015
Royal Dutch Shell (Shell) and the global petrochemical group Saudi Basic Industries Corporation (Sabic) have agreed to expand their joint venture Saudi Petrochemical Company (Sadaf) with the addition of world-scale polyolefins production units on their existing site in the Al-Jubail Industrial Zone in Saudi Arabia. Since 2012, the Sadaf Expansion project has been in feasibility study with an estimated budget of US$3 billion capital expenditure. These two years were necessary to optimize the combination of the multiple production units to be integrated in this Sadaf Polyurethane complex. From this feasibility study, Shell and Sabic intent to produce:
- Methylene Diphenyl Diisocyanate (MDI)
- Polyol
- Polyurethane
- Toluene Diisocyanate (TDI)
Because of its large size the Sadaf Polyurethane project should also include additional offsites and utilities. With the production of polyurethane and derivates, Shell and Sabic are targeting the manufacturing industries for synthetic rubber, adhesives, performances plastics, fibers, insulation materials and seals, and automotive parts. In awarding the front end engineering and design (FEED) contract for the Sadaf Polyurethane project to KBR, Shell and Sabic expect this design phase to be completed in 2015, so that first production in Al-Jubail could start before 2020.
Operators:
Joint venture Saudi Petrochemical Company (Sadaf): Operator with 100% interest
SABIC: 50% interest in Sadaf (acquired from Shell)
Saudi Basic Industries Corporation (Sabic): 50% interest in Sadaf
Contractors:
KBR: Front end engineering and design (FEED) contract for the Sadaf Polyurethane project