Sipchem Gets Feedstock for 1.8M-Ton Methanol Plant in Jubail

Sahara International Petrochemical Company (Sipchem) secured official feedstock approval from the Saudi Ministry of Energy for a new methanol plant in Jubail Industrial City. The facility will produce 1.80 million metric tons annually, a 45% increase in total capacity.

The approval, dated 24 June 2026, covers raw material supply for the wholly owned project. Sipchem said the plant will integrate with its existing Jubail assets, aiming to improve supply chain efficiency and economic returns.

Management plans to use the company's methanol production track record to meet international standards. The plant will employ advanced technology to cut energy and feedstock consumption, lowering the carbon footprint while keeping costs competitive, the company said.

Sipchem thanked the Ministry of Energy for supporting the petrochemical sector, calling the ministry's role a pillar of Saudi industrial expansion. The project aligns with Vision 2030's goals of diversifying the economy and expanding domestic manufacturing.

Sipchem did not disclose a timeline for construction or commercial operation.