Ineos to invest US$2 bn in three new plants in Saudi Arabia

UK chemical firm Inoes has signed an agreement with Saudi Aramco and France’s Total to build three new plants in the Middle East, as part of the Jubail 2 complex in Saudi Arabia.

The three world-scale plants will produce the key building blocks for carbon fibre, engineering polymers and synthetic lubricants that are pivotal to economic growth in the region.

Saudi Aramco and Total are preparing the construction of a US$5 billion petrochemical complex (Project Amiral) which will supply more than US$4 billion of downstream derivatives and speciality chemicals units; the three Ineos plants will be part of them.

Jim Ratcliffe Chairman of Ineos said: “The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in The Kingdom.”

A new 425,000 tonne acrylonitrile plant, will use Ineos’s technology and catalyst. It will be the first plant of its kind in the Middle East when it starts up 2025.

Ineos will also build a 400,000 tonne LinearAlphaOlefin (LAO) plant and associated world-scale PolyAlphaOlefin (PAO). Ineos says these units will be the most energy efficient in the world when they begin production in 2025.

The location in Saudi Arabia will give Ineos access to competitive raw materials and energy, with well invested infrastructure, to better serve customers directly in the Middle East and markets across Asia.

The project represents a continuation of Ineos’s growth strategy following the announcement of EUR3 billion investment into a new plant at Antwerp, £1bn investment across the UK, acquisitions in China and capacity increases in the US Gulf Coast, Alabama and Chocolate Bayou facilities.

Paul Overment CEO Ineos Nitriles said: “Global demand for acrylonitrile continues to grow ahead of GDP, to meet the demand for lighter, stronger, energy efficient materials such as ABS, composites and carbon fibre. This first investment in the Middle East consolidates our position as the market leader and shows a clear and ongoing commitment to meet our customers’ needs wherever they are in the world.”

Joe Walton, CEO Ineos Oligomers said: “Ineos Oligomers is one of the world’s leading merchant suppliers of LAO and PAO. The size and location of these new plants reinforces our commitment to keep pace with our LAO and PAO customers’ expanding requirements globally.” 

Ineos Nitriles is currently the world’s largest producer of acrylonitrile and acetonitrile with more than 90% of the world’s acrylonitrile using its technology. It currently has four manufacturing plants, two in North America (Texas & Ohio) and two in Europe (Germany & UK). Terminals throughout the world facilitate our sales to customers in all regions globally. The Ineos Nitriles plant in Green Lake Texas is said to be the largest and most efficient facility in the world.

Ineos Oligomers already has a worldwide network of LAO and PAO production plants and bulk storage locations. The business produces a comprehensive range of speciality and intermediate chemicals derived from ethylene and isobutene.