SABIC to Expand Ethylene Oxide and Ethylene Glycol Production in Saudi Arabia

Saudi Basic Industries Corporation (SABIC), a subsidiary of Saudi Aramco, is building a new integrated ethylene oxide (EO) and ethylene glycol (EG) facility in Al-Jubail, Saudi Arabia. The plant will utilize process technology licensed from Scientific Design Company (SD), a Linde subsidiary, which is a widely adopted technology for EG production globally.

The Al-Jubail location offers significant strategic advantages, including access to some of the world's most cost-advantaged ethylene feedstock. Proximity to other SABIC production units allows for direct integration of EO into downstream chains for EG and other derivatives. Additionally, Al-Jubail's deep-water port infrastructure provides direct access to the growing demand in Asia-Pacific markets, driven by polyester and PET manufacturing.

The global ethylene oxide market was valued at USD 60.19 billion in 2024 and is projected to reach USD 86.19 billion by 2032. The Asia-Pacific region accounts for over 50% of global ethylene oxide consumption.

Furthermore, SABIC, Linde Engineering, and Scientific Design signed an agreement in December 2023 to investigate decarbonizing the EG production process. This collaboration aims to integrate SABIC's CO2 recovery and purification technology into SD's licensed plants, potentially enabling the capture and repurposing of CO2 generated during EG production instead of emitting it.

The project represents a dual strategy: near-term capacity expansion to meet growing demand from a cost-advantaged position, and a medium-term exploration of decarbonization pathways. The goal is to position Saudi-produced EG as not only cost-competitive but also as having a reduced carbon footprint.