By: ICN Bureau
Last updated : January 14, 2022 4:16 pm
The agreement will enable studying of several potential collaboration and investment opportunities including a new chemical production facility in Poland, the expansion of several existing assets and development of a new world scale cracker
SABIC has signed a Memorandum of Understanding with Saudi Aramco and PKN Orlen for the exploration of potential petrochemical growth or expansion projects in Poland and Central and Eastern Europe.
The agreement will enable studying of several potential collaboration and investment opportunities including a new chemical production facility in Poland, the expansion of several existing assets and development of a new world scale cracker.
Abdulrahman Al-Fageeh, SABIC’s Executive Vice President for Petrochemicals said, “For more than 40 years and in every region, SABIC’s collaborative approach has built longstanding relationships, delivered innovative solutions and created mutual value. By bringing together the scale, expertise and technologies of three world-leading companies, this MOU enables us to identify and assess opportunities for ambitious and sustainable growth.”
Mohammed Al Qahtani, Aramco Senior Vice-President of Downstream, said: “These acquisitions will support the diversification of Aramco’s product portfolio across the hydrocarbon value chain — including a focus on liquids-to-chemicals pathways. Our expanding global network of refineries and chemical joint ventures allows us to reach new markets with our products, and strategically place crude oil volumes across different geographies. Our business objectives for oil and chemicals are closely aligned with PKN Orlen, and we are exploring additional opportunities in the European petrochemicals market, as well as in R&D.”
Daniel Obajtek, President of the PKN Orlen Management Board said: “This is an historic day for the Polish energy industry. The completion of the merger is an opportunity to ensure high-quality crude oil supplies to Poland from Aramco. This is a key stage in building a strong multi-utility group that delivers diversified and reliable energy to Poland. Such international partnerships are essential for building the largest multi-utility group in this part of Europe.”
Upon completion of the exploration phase and if the parties agree to pursue any potential petrochemical project, they will enter into a separate project joint development agreement (JDA).
PKN Orlen is Poland’s top energy group and specializes in the manufacture, distribution, wholesale and retail sale of refined petrochemical products. It operates several refineries located in Poland, Lithuania and the Czech Republic.