Aramco, Sabic to reassess $20bn crude-to-chemicals project

  • Date: 19-Oct-2020
  • Source: Arabian Business
  • Sector:Oil & Gas
  • Country:Saudi Arabia
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Aramco, Sabic to reassess $20bn crude-to-chemicals project

Two companies have decided to re-evaluate scope of Yanbu project on the Red Sea coast

Saudi Aramco and Saudi Basic Industries Corp. (Sabic) will re-evaluate the scope of a planned crude-to-chemicals project in the kingdom as they seek to reduce spending amid a slump in prices for their products.

The two companies have decided to reassess the Yanbu project on the Red Sea coast - which was expected to cost as much as $20 billion - to incorporate existing facilities instead of building an entirely new one, Sabic said in a statement.

Sabic attributed the losses to a lower average price and sales volume, mainly due to the impact of the coronavirus pandemic

Aramco and Sabic were looking to shelve the project, or incorporate it with existing refineries, as part of plans to cut back on