LyondellBasell eyes 2032 start for Sipchem JV Jubail petchems complex: CEO

US-based LyondellBasell has estimated a 2032 startup for the Jubail-based petrochemical complex, CEO Peter Vanacker told Platts during the Gulf Petrochemicals and Chemicals Association annual forum in Bahrain Dec. 9.

"This is a huge project," Vanacker said, remarking that the project is currently in its first phase of evaluating feasibility and the market environment, "but if everything would continue to progress, then we're probably talking about 2032," he added.

In February, Saudi-based Sipchem announced it had successfully allocated feedstock from the Saudi Ministry of Energy for the joint venture complex, which is set to add a production capacity of 1.5 million metric tons/year of ethylene and 1.8 million mt/y of derivative products, including basic and specialty polymers, the company reported Feb. 27 to the Saudi stock exchange, Tadawul.

Vanacker shared his expectations for a petrochemicals market upturn "much earlier" than 2032, despite the downturn's persistence since roughly the second half of 2023. Overcapacity has led to a wave of portfolio rationalizations and project closures across various regions, particularly in Europe.

Pursuing opportunities in the Middle East, such as the Sipchem-LYB JV complex, is "foundational to our success," Vanacker said in a Dec. 9 panel session at GPCA 19, citing the Middle East's competitive raw materials, energy costs and access to growing markets.