Alujain says 24,000 propane equivalent barrels allocated for new project, highly certain about viability: CEO

Alujain Corp.’s CEO and Board Member Khalid Al Dawood

Alujain Corp. was allocated 24,000  barrels of propane equivalent per day for propylene production at its new project in Yanbu Industrial City. The project will have the same pricing and feedstock allocation period as other industrial investments, CEO and Board Member Khalid Al Dawood told Argaam in a phone call.

The new project is largely similar to that of National Petrochemical Industrial Co. (NATPET), in terms of main production units. However, it will operate with an over 50% rise in capacity deploying the latest technology.

It will focus on high-quality categories of propylene products for specialized applications that cover medical applications, automotive industry and battery manufacturing. The project is characterized by additional competitive advantages, thanks to the top-notch technology it utilizes, Al Dawood explained.

He also stressed Alujain’s strong solvency and ability to finance the project from its internal resources, adding that big projects are mainly funded through project financing.

Al Dawood also cited the technical support of the project’s strategic partner, who will allow the transfer of required technologies and know-how capabilities of the products, as well as the marketing and specialized applications. More details will be announced, once binding partnership agreements are reached.

Alujain obtained, on Nov. 3, the Ministry of Energy's approval on a feedstock allocation for the establishment of a new project in Yanbu Industrial City, Argaam earlier reported.

The total cost of the project is estimated at about SAR 7.5 billion ($2 billion), the statement said, adding that it will likely start operation in the first half of 2026.