Argus Media Limited

09/30/2021 | News release | Distributed by Public on 09/30/2021 06:20

Sabic takes over distribution of PetroRabigh’s petchems

Saudi petrochemical producer Sabic will take over the marketing and distribution of petrochemical products produced by fellow Saudi-based petrochemical producer PetroRabigh from 1 October.

The agreement was struck between the two producers and state-owned Saudi Aramco. PetroRabigh is a joint venture between Aramco and Japanese trading house Sumitomo. Aramco also owns a 70pc stake in Sabic.

The exact details of Sabic's new distribution remain unclear. PetroRabigh's derivative petrochemical units include production capacity for 700,000 t/yr of polypropylene, 600,000 t/yr of linear low-density polyethylene (LLDPE)/high-density polyethylene (HDPE), 300,000 t/yr of HDPE and 160,000 t/yr of low-density polyethylene.

Saudi Aramco has been consolidating its downstream assets this year as it aims to increase supply chain efficiency. Sabic will also begin marketing and selling Saudi Aramco's petrochemicals from 1 October.

Sabic also began marketing Sadara Chemical products in the Middle East on 1 July. Sadara is a joint venture between Saudi Aramco and US petrochemical producer Dow.

By Matthew Rajendra