SABIC affiliate, National Industrial Gases Company (GAS), has recently awarded two turn-key contracts to the Linde AG of Germany and Linarco Saudi Arabia Ltd. to carry out engineering and construction works of two new air-separation units (ASU) at GAS complexes in Jubail and Yanbu industrial cities.
GAS Chairman, Mr. Ibrahim Al-Shuweir said, “I expect production to start at these two new plants by April 2008, each having a production capacity of 3,000 metric tons of oxygen per day. These two new ASUs are part of expansion plans in line with SABIC’s strategic growth to meet its future production plans, bringing the total annual production capacity to 60 million tons during the next two years”.
SABIC owns 70% of GAS. A group of national gas companies and establishments own the remaining 30%. GAS started its initial production in 1984 and underwent a series of mega expansion projects to meet SABIC’s requirements for industrial gases in Jubail and Yanbu. Also, GAS services are provided to a number of national private sector companies and establishments.
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 150 billion), and one of the world’s 10 largest petrochemicals manufacturers. The company is among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC’s profit rose to a record SR 14.2 billion (US$ 3.8 billion) in 2004, a 112% increase on 2003 and the company’s highest profit since inception. Sales revenues for 2004 totaled SR 68.5 billion (US$ 18.3 billion), an increase of 47% on revenues in 2003 making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 16,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia – in Al-Jubail and in Yanbu – comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell and Mitsubishi Chemicals. SABIC’s overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons of production in 2004.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe, headquartered in Sittard, the Netherlands, employs 2,300 and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2004, SABIC Europe sold 6 million tons of polymers, base chemicals and intermediates, mainly in the European market.
