Petro Rabigh and Honeywell sign NEP agreement
31 January 2025
Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) has signed a non-binding agreement with US-headquartered Honeywell to explore the deployment of Honeywell UOP’s naphtha-to-ethane-and-propane (NEP) technology.
The non-binding memorandum of understanding (MoU) represents a significant milestone in leveraging advanced technologies to transform butane and naphtha into high-value feedstocks for light olefin production, such as ethylene and propylene, a joint statement said.
NEP converts light naphtha and butanes into ethane and propane, providing what Honeywell describes as "a flexible, cost-effective, and sustainable solution" for ethylene and propylene production.
The MoU aims to enhance productivity, operational efficiency and sustainability "through the production of value-added petrochemical products from crude oil".
Supported by the Energy Ministry, the initiative also aligns with the goals of Saudi Vision 2030 to drive innovation in the energy sector, promote liquid-to-chemical (LTC) processes, and improve energy efficiency and economic resilience, the statement added.
Petro Rabigh was originally established as a basic topping refinery, with crude oil processing facilities, at Rabigh on the kingdom’s Red Sea coast to the north of Jeddah.
However, in 2005, Aramco and Japan's Sumitomo Chemical Company formed an equal joint venture to transform the business into an integrated refinery and petrochemicals complex.
In August last year, Aramco announced signing an agreement with Sumitomo Chemical to acquire an additional 22.5% stake in Petro Rabigh.
Aramco and Sumitomo Chemical presently own 37.5% shares each in Petro Rabigh, with the remaining 25% shares trading on the Saudi Exchange (Tadawul) since 2008.
Following the completion of the transaction, which is priced at SR7 ($1.86) a share, Aramco will become the majority shareholder in Petro Rabigh, with a 60% stake, and Sumitomo Chemical will retain a 15% stake.
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