DHAHRAN, Oct 8: The Saudi state oil giant Saudi Aramco and Dow Chemical Company launched a close to $20 billion chemical project in Saudi Arabia, the largest ever petrochemical facility ever built in one single phase.

Aramco CEO Khalid Al-Falih and Dow Chairman and CEO Andrew N. Liveris on Saturday signed the agreement on behalf of their respective companies in the presence of Saudi ministers for petroleum and finance, royal guests and a galaxy of industry leaders.

The joint venture, Sadara Chemical Company, would construct, own and operate the integrated complex in Jubail in the eastern province of Saudi Arabia.

Comprising 26 state-of-the-art units with each unit representing a major project in its own right, the joint venture would produce chemicals, from linear low-density polyethylene to amines, glycol ethers, PMDI, TDI, ethoxylates, butanol,isocyanates, polyols, elastomers and propylene glycol.

Sadara would be the largest American investment ever made in the Kingdom and represents the greatest foreign direct investment in the Kingdom by any one in any industry, stated Khalid Al-Falih, the Aramco President and CEO.

The project is expected to be completed in three years and within two years of its operation, it is projected to have a sales revenue of $10 billion per annum.

Products of the new joint venture would specifically target the emerging markets of Asia and Africa.

Besides, it is endeavouring to give a push to the emerging downstream plastic industry within the kingdom too. Forty-five per cent of its products would be targeted at high growth Asia Pacific market.