Financial Data based on Tadawul reporting.
Crude Oil pricing from Macrotrends

The Middle East is seeing major investments in Ethylene derivatives capacities (UAE: ADNOC - Borouge, KSA: Satorp Refinery - Project Amiral, Petro Rabigh Expansion). All projects backed by major and cash rich investors. We can only hope, that the derivative value chains and feedstock configurations have been carefully examined, to not face a similar situation as Sadara.

Since its inception, the company has faced significant challenges, necessitating adjustments to feedstock and additional financing from its shareholders, Dow Chemicals and Saudi Aramco, following startup. Despite these efforts, the overall situation remains difficult, with Sadara continuing to struggle to generate profits for nearly three years.

Saudi Aramco has also taken the decision in 2024, to write off the investment in their books.

Source: Saudi Aramco Annual Report 2024

The configuration of the site with a very high degree of value chain complexity is not generating the results envisioned.

Please see here: 

• Mass Balance
• Flow Chart

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