Royal Dutch/Shell is said to be earmarking billions of dollars of new investments in petrochemical and petroleum projects in Jubail Industrial City.

The investments will complement the global giant's well established joint venture plants, Sasref and Sadaf, in the city.

The announcement follows the company winning a significant stake in the Kingdom's gas initiative.

''Shell is honoured to be given such a significant role in this historic development. We are delighted to have been selected to participate in both Core Venture 1 and Core Venture 3,'' group chairman Mark Moody-Stuart said.

Shell officials see the gas initiative as providing an excellent opportunity for the company to build on its long history of partnership with Saudi Arabia, its people and its government.

''Hydrocarbons in the Kingdom offer a chance for global competitiveness. Oil is restricted by Opec policy while gas is restricted by under-investment,'' said Shell Saudi Arabia president Floris Ansingh.

''Let us join Aramco and kick-start the economy by making gas abundantly available at a competitive price.

''By doing that, you create ripples throughout the economy. We call this the multiplier effect: Growth and jobs all over Saudi Arabia, new uses for gas and new ideas. What an opportunity and what a challenge for investors! When I say 'investors' I also mean Saudi investors whose money is now outside the Kingdom for lack of opportunity here,'' he said.

The company also points to positive changes in the country - such as the formation of the Supreme Economic Council, a new Investment Law and the establishment of the Saudi Arabian General Investment Authority (Sagia) as being key factors in the overall optimism.

Through the gas developments, Shell sees further opportunities to enhance its image as a key developer of human resources.

The company, according to officials, is committed to using Saudi manpower for the projects, a process which is not new to the global organisation.

At Sasref (a 50:50 joint venture with Saudi Aramco), Saudisation levels are today at more than 90 per cent in a refinery which is one of the world's largest.

Equally, at Sadaf, a world-class and world-scale petrochemical project, Saudisation runs at 90 per cent. And the Saudis employed by Shell at Sadaf are interchangeable with any part of the Shell Group or within Sabic.

Shell sees Jubail as having all the necessary infrastructure to accommodate its future downstream expansion plans.

Shell has been active in the Kingdom of Saudi Arabia since the 1940s and has invested so far more than $7 billion with its partners in petrochemicals, refining, and other downstream business ventures.