HOUSTON and RIYADH, Saudi Arabia, Jan. 16, 2024 – LyondellBasell (LYB) today announced it entered into an agreement to acquire a 35% interest in Saudi Arabia–based National Petrochemical Industrial Company (NATPET) from Alujain Corporation (Alujain) for approximately $500 million. Enabled by its Spheripol polypropylene (PP) technology, the joint venture positions LYB to grow and upgrade its core PP business through access to advantaged feedstocks, plus additional product marketing capacity, in a strategic region.
- Technology-enabled JV increases LYB access to advantaged feedstocks and attractive markets
- Transaction encompasses existing assets and planned growth projects
Closing of the transaction is subject to regulatory and other customary closing conditions. Alujain and LYB are also assessing together potential construction of a new propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site, subject to a final investment decision. The project is being studied with a shared goal to implement solutions that align with the Kingdom of Saudi Arabia’s 2060 carbon reduction strategy.
Alujain is a petrochemicals, energy, mining and metals company in the Kingdom of Saudi Arabia. As majority owner of NATPET, the company is a longtime licensee of LYB Spheripol PP technology, one of the solutions it uses to operate a propylene and PP complex in Yanbu Industrial City. NATPET currently has an annual PP production capacity of approximately 400,000 tons.
“This investment in NATPET reflects our strategy of growing and upgrading our core around assets and businesses with lasting advantages,” said LYB CEO Peter Vanacker. “We are pleased to invest in this joint venture, which leverages LYB’s technology, leading global market positions and Alujain’s proven operational excellence. We expect the joint venture will add value both through our ownership interest, as well as marketing of the products in key regions.”
“We welcome the opportunity to deepen our ties with LYB, first as licensee and now as joint venture partner,” said Alujain Chairman Mohammed Bin Saleh AlKhalil. “We look forward to advancing our collective efforts to produce and market essential materials that serve our customers’ needs across the globe. This new investment is a great step forward for developing the downstream sector in the Kingdom of Saudi Arabia, and Alujain has plans to drive these developments further.”
