Riyadh – Mubasher: Sahara International Petrochemical Company (Sipchem) has received official approval from the Saudi Ministry of Energy for the allocation of feedstock required to establish a new world-scale methanol plant.
Located in Jubail Industrial City, the facility is designed with an annual production capacity of 1.80 million metric tons. This strategic expansion is expected to increase the company’s total production capacity by approximately 45%, marking a significant milestone in Sipchem’s long-term growth strategy and its alignment with the industrial objectives of Saudi Vision 2030.
The approval, granted on 24 June 2026, authorizes the supply of essential raw materials needed to power the new facility.
As a project fully owned by Sipchem, the methanol plant represents a pivotal step in the company’s efforts to scale its operations within the petrochemical sector.
By adding 1.80 million metric tons to its annual output, Sipchem aims to solidify its market position and leverage economies of scale to enhance its global competitiveness.
Beyond the immediate increase in volume, the project is designed to foster deep operational integration with Sipchem’s existing asset base in Jubail.
Management indicated that the new plant will maximize value addition by streamlining supply chain efficiencies and improving overall economic returns.
The integration is expected to provide the company with greater operational flexibility, allowing it to better navigate market fluctuations while maintaining a trajectory of sustainable long-term growth.
Sipchem intends to utilize its extensive operational track record in methanol production to ensure the project meets rigorous international standards.
The development plan emphasizes a disciplined approach to capital expenditure and the adoption of cutting-edge technologies. Specifically, the company noted that the plant will employ advanced solutions focused on optimizing energy and feedstock consumption.
These technical efficiencies are intended to lower the carbon footprint of the production process and ensure the facility remains cost-competitive in an evolving regulatory and economic environment.
The company expressed its appreciation to the Ministry of Energy for its ongoing support of the petrochemical industry.
Sipchem highlighted that the Ministry’s role in enabling such national initiatives is a fundamental pillar for the continued expansion of the Saudi industrial sector.
By increasing its domestic manufacturing footprint, Sipchem aims to contribute to the diversification of the national economy and support the broader goals of the Kingdom's developmental roadmap.
