Saudi Arabia Approves $5.6 Billion Expansion in Jubail, SPA Says

Saudi Arabia’s Royal Commission for Jubail and Yanbu gave approval for companies to invest 21.2 billion riyals ($5.6 billion) in projects at Jubail Industrial City, the Saudi Press Agency reported, citing a signing ceremony.

Al Jubail Petrochemical Co., a joint venture between Saudi Basic Industries Corp. (SABIC) and Exxon Mobil Corp. known as Kemya, got authorization to develop a 12 billion-riyal project to produce ethylene propylene diene monomer, rubber and black carbon, the news agency reported.

Saudi International Petrochemical Co., known as Sipchem (SIPCHEM), was approved to develop a 2.8 billion-riyal venture to produce ethylene vinyl acetate and low-density polyethylene at a capacity of 200,000 tons a year, SPA said.

National Industrialization Co., or Tasnee (NIC), obtained approval to develop a 1.4 billion-riyal project to produce superabsorbent polymers at the capacity of 80,000 tons a year, according to SPA. Saudi Arabian Fertilizer Co., known as Safco (SAFCO), was authorized to develop a 2-billion-riyal project to produce 3.6 million tons of urea annually, SPA added.

To contact the reporter on this story: Mourad Haroutunian in Riyadh at mharoutunian@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net