Major Step Toward Establishing a World-Scale Steam Cracker and Derivatives Complex
AL KHOBAR, Saudi Arabia, and HOUSTON – Feb. 27, 2025 – Sipchem and LyondellBasell (LYB) have secured a strategic feedstock allocation from Saudi Arabia’s Ministry of Energy, marking a significant milestone in their joint feasibility study for a large-scale mixed feed cracker and derivatives complex. This allocation sets the stage for defining the project’s technical, financial, and commercial framework, with Sipchem holding a 60% stake and LYB 40%.
Once realized, this project will manufacture high-value petrochemical products for both domestic use and global export, while also generating thousands of local job opportunities. With access to cost-advantaged feedstocks, cutting-edge technologies, and a prime location near key international markets, the initiative is poised to deliver long-term economic and industrial benefits.
Leveraging LyondellBasell’s advanced technologies, the complex will produce specialized grades of polyethylene and polypropylene, including the Catalloy product line, known for its unique elastomeric properties.
Beyond production capabilities, Sipchem and LYB are committed to exploring sustainable solutions, such as low-emission technologies, to support both their corporate sustainability targets and Saudi Arabia’s broader net-zero goals.
Leadership Perspectives
Abdullah Al-Saadoon, CEO of Sipchem, emphasized the partnership’s importance in reinforcing the company’s global and regional market position. “This collaboration with LyondellBasell represents a major step toward achieving our vision for sustainable growth. By utilizing state-of-the-art, energy-efficient technologies, we aim to enhance our environmental performance while contributing to the Kingdom’s industrial expansion. We sincerely appreciate the Ministry of Energy’s continued support of the petrochemical sector, which has played a key role in enabling us to pursue these ambitious objectives.”
Peter Vanacker, CEO of LyondellBasell, echoed this sentiment. “Securing this feedstock allocation marks a crucial phase in our partnership with Sipchem. As we move forward with the feasibility study, we reaffirm our long-term commitment to Saudi Arabia. We are grateful to the Ministry of Energy for its support and collaboration and look forward to deepening our presence in the Kingdom’s dynamic and rapidly evolving economy.”
About LyondellBasell
LyondellBasell (NYSE: LYB) is a global leader in the chemical industry, delivering innovative solutions that enable sustainable living. With a focus on advancing the circular and low-carbon economy, the company develops high-quality polymers and petrochemical products for a wide range of industries, including transportation, food safety, water purification, and healthcare. For more information, visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
About Sipchem
Sahara International Petrochemical Company (TASI: SIPCHEM), widely known as Sipchem, is a pioneering petrochemical company based in Saudi Arabia. Since its establishment in 1999, Sipchem has been producing high-quality chemical and polymer products for industries such as construction, automotive, electronics, and packaging. With a strong commitment to sustainability, the company integrates energy efficiency and advanced technologies to support the circular economy and reduce environmental impact. Learn more at www.Sipchem.com or follow @SipchemGlobal on LinkedIn.
Cautionary Note on Forward-Looking Statements
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results may differ due to factors such as regulatory approvals, project feasibility outcomes, investment decisions, economic conditions, and the successful execution of planned initiatives. For further details on potential risks, refer to LyondellBasell’s latest Form 10-K filing, available at www.lyondellbasell.com or the SEC website (www.sec.gov). LyondellBasell assumes no obligation to update these statements unless required by law.