PETROCHEMICALS: CHEMICALS

Segment landscape

The chemicals market remained in a prolonged down-cycle, driven by weak global demand, significant new capacity additions, and soft product pricing. Structural oversupply continued to compress margins, requiring a sharper focus on disciplined operations, cash protection, and optimization. Margins across methanol, MTBE, MEG, and aromatics remained weak, with a gradual recovery expected from 2026 as demand stabilizes and rationalization progresses.

2025 developments

A key milestone was achieved with SABIC's first commercial sale of certified low-carbon methanol. SABIC has also achieved certification for low-carbon methyl methacrylate (MMA), a key material for the automotive, coatings, adhesives, and construction industries, and a new downstream use for low-carbon methanol made with captured CO₂. These achievements demonstrate SABIC's efforts to reduce emissions and advance a circular carbon economy. SABIC also progressed initiatives to unlock new applications for its ethoxylation plant, expanding its portfolio within the polyurethane industry.

Capabilities were enhanced in ethoxylated polyols, including the successful development of a castor oil ethoxylated polyol, culminating in the first commercial sale. In parallel, SABIC expanded its polyurethane offering—covering isocyanates and polyether polyols—into Europe, improving access to new markets, while broadening the ethoxylates portfolio to include polyethylene glycols and bio-based polyols, with new grades commercialized for polyurethane applications.

Product sustainability advancement

Glycols and linear alpha olefins achieved TÜV Rheinland certification for product carbon footprints in compliance with Together for Sustainability (TfS) and ISO 14067. In addition, ISCC CFC certification was obtained for glycols, enabling the attribution of CO₂ emissions avoidance through the conversion of captured CO₂ into methanol, resulting in reduced product carbon footprints for its glycols.

Manufacturing growth, reliability, and optimization

The Low Temperature Recovery System (LTRS-1) at Ibn Zahr was commissioned in early 2025, improving C3 and C4 recovery and enabling 99% feedstock recovery, equivalent to an additional 50 kilotons of MTBE production annually.

SABIC also successfully upscaled the MTBE plant at Petrokemya using its own technology. This upscaling established one of the world's largest single train MTBE production lines, with annual capacity reaching approximately one million metric tons per annum, nearly double the existing production.

Geographic expansion and market presence

While growth in chemicals is increasingly driven by Southeast Asia, India, and China markets, SABIC will maintain strategic access for our products through exports to both Europe and the Americas.

Partnerships and societal contribution

SABIC partnered with a leading local downstream producer to connect to its benzene pipeline network, with expectations to secure a long-term supply agreement to meet local benzene demand. During the Hajj season, SABIC supported the Adahi project by supplying approximately 1,000 metric tons of liquid CO₂, enabling the production of dry ice used in the quick-freezing of sacrificial meat to preserve quality, reduce waste, and ensure food safety. SABIC also maintained uninterrupted liquid CO₂ supply to the water desalination sector, supporting peak demand and new site intake, reinforcing its strong market position in this strategic sector.

Raw materials

SABIC's raw materials portfolio relies on a mix of gas- and crude oil–based petrochemicals, including methane, ethane, propane, butane, naphtha, and condensates. In Saudi Arabia, long-term agreements with Saudi Aramco secure feedstock, with ongoing efforts to optimize utilization and preserve value during disruptions. Globally, SABIC continues to adjust its feedstock base to strengthen resilience.

Securing feedstock for key value chains

Within the Aromatics chain, SABIC sources benzene, cumene, phenol, PTA, and acetone to support production of styrene monomer, polycarbonates, oryl, and PET. Availability and cost efficiency are maintained through long-term agreements with Saudi Aramco affiliates and other suppliers, complemented by internal production and a geographically diversified supplier network. Adequate storage capacity further mitigates supply-chain disruptions.

Raw material base and continuity of approach

Key olefins feedstocks – including ethane, propane, butane, and naphtha – remain central to SABIC's operations. Mineral-based raw materials, used in catalysts and other applications, are sourced globally, reflecting continuity in SABIC's integrated raw materials approach.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2025 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}