In Riyadh, at the Ministry of Energy’s headquarters, a significant alliance was forged between Alujain Corporation, a key player in Saudi Arabia’s petrochemical industry, and Basell International Holdings, a branch of the industrial giant LyondellBasell Industries. This union was cemented with the signing of a strategic partnership agreement.
The pact, which was signed in the presence of the Saudi Energy Minister Prince Abdulaziz bin Salman, sees Basell International Holdings acquiring a 35 percent interest in the National Petrochemical Industrial Co. (NATPET), a project currently under development by Alujain Corporation. NATPET is in the process of establishing a petrochemical complex, with an investment estimated at approximately SR7.5 billion ($1.99 billion), according to the ministry.
This transaction aligns with the objectives of Saudi Vision 2030, which aims to enhance the value of the kingdom’s resources, in this instance by producing materials for industries such as plastics, automotive, electronics, and construction.
Mohammed bin Saleh Al-Khalil, Chairman of Alujain, expressed enthusiasm about the deal, stating, We welcome the opportunity to deepen our ties with LYB, first as licensee and now as joint venture partner.
He emphasized the importance of the investment for the growth of the downstream sector in Saudi Arabia and highlighted Alujain’s commitment to driving further development.
Peter Vanacker, CEO of LYB, shared similar sentiments, remarking on the strategic nature of the investment in NATPET. This investment in NATPET reflects our strategy of growing and upgrading our core around assets and businesses with lasting advantages,
Vanacker noted. He also commented on the value the joint venture will bring through ownership and the marketing of products in key global regions.
The establishment of this partnership was facilitated by the Ministry of Energy’s approval of the allocation of feedstock required for NATPET, marking a significant step forward in the collaboration between Alujain Corporation and Basell International Holdings.