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FINANCIAL NEWS
Saudi Aramco, Sumitomo Chemicals move ahead Rabigh II plan
26 May 2012
(MENAFN) Saudi Aramco and Sumitomo Chemical Co decided to push on with a USD7 billion expansion of the Rabigh II petrochemical project in the kingdom, Reuters reported.
Sumitomo said it has confirmed the feasibility of the project and will move ahead to seal off various project elements, such as agreement for engineering, procurement and construction and other projects contracts, as well as project financing.
The deal was signed on the plant expansion in 2009. At that time, contracts for the work were due to be announced by 2011. The project is scheduled to run in early 2016.
Sumitomo explained that the Rabigh II programme will include expanding an existing ethane cracker, and building a new aromatics complex using around 3 million tonnes per year of naphtha to make higher-value petrochemical products.
Aramco and Sumitomo Chemical each hold a 37.5 percent stake in Rabigh Refining & Petrochemical Co, better known as Petro Rabigh, which owns the plants.
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