Saudi Basic Industries Corporation (SABIC) said its subsidiary Saudi Methanol Company (AR-RAZI) has received approval from the Ministry of Energy to allocate the feedstock required to develop a new methanol production plant with an annual capacity of 1.8 million tonnes in Jubail.

The approval was granted on September 3, 2026, marking a key step towards the development of the proposed plant, according to a disclosure by SABIC to the Saudi Exchange on Sunday.

The project will strengthen SABIC’s methanol production portfolio and is aligned with the company’s strategy of focusing on its core businesses while strengthening the fundamentals of its operations and positioning the group for long-term growth.

SABIC said the company will announce any material developments related to the project, including the Final Investment Decision (FID), in due course.

The proposed facility in Jubail is expected to further support Saudi Arabia’s petrochemicals and downstream industries by expanding domestic production capacity and strengthening the Kingdom’s position as a major global chemicals manufacturing hub.

SABIC expressed its appreciation to the Ministry of Energy for its continued support in enabling the company to expand its contribution to the Kingdom’s industrial development and the objectives of Saudi Vision 2030.

The company said the project forms part of its broader efforts to deliver sustainable long-term value and maximise value for shareholders through a greater focus on its core business and future growth opportunities.