Tasnee’s SEPC Joint Venture Secures $453 Million Loan for Ethylene Cracker Expansion
RIYADH, Saudi Arabia – January 27, 2026 — National Industrialization Company (Tasnee) announced its 60%-owned joint venture, Saudi Ethylene & Polyethylene Company (SEPC), secured a Shariah-compliant $453.34 million (SAR 1.7 billion) loan from Bank Albilad to fund ethylene cracker expansion at its Jubail Industrial City facility. The 12-year financing facility includes a two-year grace period and supports a $500 million engineering, procurement, and construction (EPC) contract awarded to SGC-eTEC in December 2023.
Announcement Specifics
The loan covers expansion of SEPC’s ethylene cracker plant, which currently holds 1 million tons per year capacity. Collateral for the financing includes SEPC promissory notes and guarantees from joint venture partners. The expansion project targets an 18% capacity boost at the Jubail facility, the world’s largest petrochemical hub. No executive quotes were provided in the company’s announcement, which emphasized the security of funding arrangements for the multi-year construction timeline.
Industry Context
Saudi Arabia’s petrochemical sector serves as a cornerstone of non-oil economic growth under Vision 2030, with ethylene crackers producing essential feedstock for plastics and chemicals manufacturing. The expansion aligns with rising global ethylene demand and positions SEPC competitively amid tight supply chains. Jubail Industrial City hosts this project alongside ongoing maintenance programs and infrastructure upgrades across the petrochemical complex.
The Shariah-compliant financing structure attracts regional capital while supporting Saudi Arabia’s energy diversification objectives. Similar capacity expansions and feedstock approvals for new crackers across the Kingdom signal sustained investment in downstream petrochemical capabilities. These projects enhance export competitiveness throughout MENA markets, where Saudi Arabia maintains petrochemical leadership.
Conclusion
SEPC’s expansion promises increased ethylene output strengthening Tasnee’s industrial portfolio and Saudi Arabia’s position in global petrochemical markets. Next steps focus on EPC execution by SGC-eTEC amid ongoing facility maintenance at the Jubail complex.
Sources: Zawya, Argaam, Tasnee, Vantage Logistics
