The factories will be part of a $5 billion petrochemical complex Saudi Aramco and France’s Total are constructing in the Kingdom.
Britain-based INEOS plans to spend $2 billion to build three chemical plants in Saudi Arabia as the group enters the Middle East for the first time.
INEOS stated that it signed an MoU with Saudi Aramco and Total to build three plants as part of the Jubail 2 complex.
The deal includes a plant to manufacture acrylonitrile, a chemical used to make certain types of plastics, INEOS will also build a facility for linear alpha olefins and associated poly alpha olefin used to produce lubricants.
The three plants are due to begin production in 2025.
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.”
Oil companies are increasingly betting on petrochemicals to drive future demand growth as the world grows seeks to tackle emissions from gasoline and diesel vehicles. Saudi Aramco, the world’s biggest crude producer, bought a majority stake in local chemical giant SABIC for about $69 billion this year.
INEOS has been growing with acquisitions of oil and gas fields and a major pipeline in the UK, chemical facilities in China as well as investments in plants in Belgium and the US.