Sahara International Petrochemical Co. (Sipchem) and National Industrialization Co. (Tasnee) granted an engineering, procurement, and construction (EPC) contract for an ethylene cracker plant, with a project value of USD 500 million (SAR 1.87 billion), to SGC-eTEC Engineering & Construction Company, based in South Korea.
This development is aimed at enhancing the production capacity of the ethylene crushing plant situated at the Saudi Ethylene and Polyethylene Company, a shared venture under Tasnee Sahara Olefins Co. (TSOC), wherein Sipchem holds a 32.55% stake, and Tasnee holds 60%. The project is anticipated to be finalized, and production is set to commence in the first half of 2026. This expansion is projected to increase olefins production at the ethylene crushing plant by approximately 18%, aligning with anticipated contracts and prices.
Such an enhancement is expected to positively impact the consolidated financial statements of Sahara International Petrochemical Company (Sipchem), with any significant developments to be communicated subsequently. Tasnee is projected to receive an average annual contribution of over USD 53 million (SAR 200 million) from the project, with the pertinent financial effects manifesting in the 2026 financial statements. The project’s financing structure involves 30% from internal resources and 70% from external facilities.
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