Petrochemical projects are expected to drive the commencement of upcoming projects across the oil and gas value chain in Saudi Arabia, accounting for 61 percent of the total projects expected to start operations by 2025, according to GlobalData, a leading data and analytics company.
The $1.6 billion plant provides feed stock to other petchem and speciality companies in the Jubail industrial city.
"The state-owned company, Saudi Aramco, already acquired 70% stake in the country’s petrochemical giant, Saudi Basic Industries (Sabic), last year for approximately $69 billion as part of its strategy to diversify from the upstream sector," said Tejomoortula.
According to GlobalData, 18 midstream projects are expected to start operations in Saudi Arabia during 2021 to 2025 period.
Some of the key midstream projects expected to start operations by 2025 include the Tanajib gas processing plant with a capacity of 2.8 billion cu ft per day and a project cost of $3.5 billion and Hawiyah Unayzah underground gas storage site costing $2.1 billion.
The gas processing plant is part of expansion of the Tanajib oil project, while Hawiyah Unayzah underground gas storage site helps to meet seasonal variations in gas demand in the country.
Tejomoortula said: "In the upstream (fields) segment, Jafurah is a key upstream production project, which is set to begin operations with a total production capacity of 916.7 thousand barrels of oil equivalent per day."
"The project, considered as the largest unconventional gas development in Saudi Arabia, will provide additional gas for domestic consumption and valuable feedstock to petchem projects," he added.
