Saudi oil major Aramco and the kingdom’s petrochemicals giant Saudi Basic Industries Corporation (SABIC) are ready to invest into building a processing plant in Russia, Saudi Energy Minister Khalid al-Falih has said, according to the Rossiya 24 TV channel.
The minister said that the Saudi partners are hoping to cooperate with Sibur, Russia’s largest petrochemicals firm.
“I hope our cooperation with Sibur will allow Saudi Aramco and SABIC to invest into building of a petrochemical plant in Russia,” al-Falih said.
The minister also said that Saudi Arabia is currently discussing the opportunity of building a synthetic rubber plant in the Saudi city of Jubail with French energy major Total, China’s Sinopec, and Sibur.
“We are in advanced discussion with Sibur, as well as with Total and Sinopec,” al-Falih said. “The consortium is looking to build a plant for producing synthetic rubber in Jubail. I’m sure the plant will be built.”
The partners are currently looking for suitable technical, business, and engineering solutions, according to Sibur Chief Executive Officer Dmitry Konov.
“We are launching a joint enterprise to produce synthetic rubber in India this year,” Konov said, stressing that the production will be powered by Russian technology. “We are trying to apply the same approach in Saudi Arabia.”
Saudi Arabia has also been considering buying a share in Russia’s Arctic LNG-2 project, which is seen as a long-term solution for the Kingdom’s rising LNG demand. Last week, Interfax reported that Saudi Arabia’s Energy Minister Khalid Al Falih said his country could buy 30% of the lucrative project.
The Saudi Energy Minister visited Novatek’s Yamal-LNG plant in May 2017 and a Memorandum of Understanding (MOU) was signed between Novatek and Saudi Aramco in February this year.