INEOS announces $2bn chemicals investment in Saudi Arabia

INEOS is to spend $2bn building 3 chemicals plants in Saudi Arabia. Commenting on the investment, Wood Mackenzie Chemicals Principal Analyst, Patrick Kirby, said:

"INEOS' business is primarily centred in Europe and the U.S. currently, so this represents a geographical diversification for the company.

"The new investments will be integrated with the Saudi Aramco and Total JV mixed-feedstock steam cracker complex that is expected to be 1.5 million tonnes in size. This will allow for a much wider portfolio of derivatives than previous ethane cracker investments in Saudi Arabia.

"Mixed-feedstock steam cracking and closer integration of refining and chemical operations in Saudi Arabia represents a wider trend developing in the Middle East and Asia Pacific, as major oil company's look to gain further exposure to the petrochemical industry as transportation fuels are set to decline."