Sabic expects petchem project delays in the Middle East

Market: Petrochemicals
27/10/26

Saudi petrochemical producer Sabic expects delays in the startup of new projects in the Middle East because of ongoing supply chain disruptions caused by the US-Iran conflict, it said on 26 October.

"We expect delays in the new projects, especially in the Middle East, but no cancellation," Sabic chief financial officer Salah Al-Hareky said.

Rapid petrochemical capacity expansions in China have intensified price competition this decade, and several producers have begun to rationalise their capacities or modify feedstock slates to grapple with oversupply and geopolitical uncertainty.

The current upside in petrochemical prices would likely recede, according to Al-Hareky. "Is it six months, one year? We do not know, but it is temporary," he said.

Sabic's Fujian complex in China remains on track for startup in the fourth quarter, it said. The firm also reported a 24pc increase in third-quarter petrochemicals sales volumes from the second quarter to 6.71mn t.

Several key projects are scheduled to start operations in the Middle East in the coming years. The new capacity includes Borouge 4 in the UAE, which would add 1.4mn t/yr of production to the UAE-based producer's existing portfolio. Borouge would ramp up operations throughout the year after initial startup of production, it said in April.

Satorp, a joint venture between Saudi state-controlled Aramco and TotalEnergies, would add another 1.7 mn t/yr of ethylene capacity in Saudi Arabia. Commercial operations at the project were expected to begin in 2027.

Chevron Phillips Chemical and state-owned QatarEnergy are also investing in an ethylene cracker with a capacity of 2.08 mn t/yr. The project was initially expected to be completed by 2026.

The companies did not immediately respond to Argus' requests for comment on the startup dates.

By Sourasis Bose

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