RAW MATERIALS

SABIC’s most important raw materials include gas and crude oil-based petrochemical products such as methane, ethane, propane, butane, naphtha, and condensates. We mainly use natural gas and liquid gas as a fuel to generate energy and steam, and as a raw material for the production of key basic chemicals. Ethane, propane, butane, and naphtha are primarily fed into our steam crackers, where they are split into products such as ethylene and propylene, both important feedstocks for numerous SABIC value chains.

Thanks to a high degree of forward and backward integration, we can produce the chemical building blocks for our value chains efficiently while conserving resources within SABIC to increase supply security and strengthening our resilience to fluctuations in the supply chain. Byproducts from one facility are used as feedstocks elsewhere; this saves raw materials and energy, avoids emissions, lowers logistics costs, and leverages synergies.

For our Saudi Arabian assets, we have access to feedstock sourced under long-term contracts with Saudi Aramco as the main supplier, representing 76% of the total local supply. Saudi Aramco is a world leader in its low levels of CO₂ emissions, methane emissions, and flaring in its hydrocarbon production system. Internationally, for our assets outside Saudi-Arabia, we source key raw materials from various suppliers to minimize supply risks. SABIC's European liquid crackers are using externally-sourced feedstock, and, in the US, we commenced operations in 2022 with our ethane cracker at our Gulf Coast Growth Ventures facility, a joint venture with ExxonMobil. The SABIC-SINOPEC joint venture cracker in China utilizes a mix of liquid and gas feedstock.

As part of our efforts to minimize our carbon footprint, we are continuously exploring the optimization of our feedstock resources. Partnering with our suppliers, we are exploring new feedstock resources that have lower-carbon or recyclable-based alternatives, including sourcing renewable feedstock (like bio-naphtha) and energy, both in our energy supply and in our production.

Read more about our approach to sourcing raw materials, including minerals.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2023 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}