Sagia licenses petrochem projects

Deals are worth US $4.5 billion, according to head of Saudi Arabian General Investment Authority.

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By  J Shankar Published  May 26, 2005

Saudi Arabian General Investment Authority (Sagia) has issued licenses to build four new petrochemical projects in Jubail Industrial City. According to the governor of Sagia, Amr Al Dabbagh, investment in the projects will total SR17.2 billion (US $4.5 billion). The projects include one by ChevronPhillips Saudi Arabia, which aims to produce polyethylene and polypropylene. The project’s cost is estimated at around SR5 billion, and it will employ around 490 people. Another project by ChevronPhillips Saudi Arabia will involve the large scale production of ethylene. Investments in this scheme are estimated at SR6.37 billion, and the plant will initially employ 280 people. A license was also given to the National Industrial Company for Olefins for the production of propylene and ethylene, with investments here to total SR3.27 billion, whilst another license was granted to the National Industrial Company for Polyolefins for the production of low and high density polyethylene. This facility will cost around SR2.6 billion to establish. Al Dabbagh described the projects as: “Unique, as they will raise the Kingdom’s contribution to petrochemicals production in the international markets and will help in setting up more plastics industries in Saudi Arabia.”

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