The Plant would be located in Yanbu industrial city on the Red Sea Coast

Saudi Arabia and China are planning to build a Petrochemical Plant in the Gulf Kingdom at a cost of 21 billion Saudi riyals ($5.6 billion), Saudi officials said on Tuesday.

Saudi Arabia’s Royal Commission for Yanbu tweeted that it has signed an agreement with the Saudi Polychem Co for the allocation of 2 million square metres of land for the project which involves the conversion of petroleum coke into petrochemical and chemical products.

The agreement on Tuesday follows the Signing of a Memorandum of Understanding for a joint Saudi-Chinese venture in the Western Port City of Yanbu during a visit to Beijing by Saudi Arabia’s Crown Prince Mohammed bin Salman in February 2019.

“We have a Chinese Partner in this Project, which will be launched in 2020 and is scheduled to be completed in 2024,” the Commission’s acting CEO Fahd Al-Qurashi said in a video published on Twitter.

He said Yanbu Aramco Sinopec Refining Company (YASREF) would supply feedstock for the project, adding that it would involve “a variety of products that will contribute to creating scores of industrial investment opportunities.”

Saudi Arabia & China both have enhanced political trust and maintained good momentum in pragmatic cooperation in the fields of economy, trade, energy, science, technology, education and culture. The Belt & Road Initiative and the Saudi 2030 Vision has great potential.

This Year also marks the 30th Anniversary of the establishment of diplomatic relations between China and Saudi Arabia.