This opportunity entails localizing the entire value chain for well stimulation fluids to serve the KSA and Middle Eastern markets.
Well stimulation fluids consumption in KSA and the Middle East is expected to increase significantly over the next couple of years driven mainly by the increased well activity and increased production (~20% increase expected across the Middle East).
The overall consumption for well stimulation fluids consumption in the Middle East is expected to increase from 986 KTPA in 2018 to 1,542 KTPA in 2025.
- KSA market: Local consumption is expected to increase from 330 KTPA in 2018 to 449 KTPA in 2025, leading to an increase in market size from 121 M USD in 2018 to 190 M USD in 2025.
- Rest of the Middle East: Local consumption is expected to increase from 656 KTPA in 2018 to 1,093 KTPA in 2025, leading to an increase in market size from 242 M USD in 2018 to 462 M USD in 2025.
In addition, several raw material used in well stimulation fluids production are readily available in KSA including hydrochloric acid, formic acid, acetic acid and aluminum.
The increase in demand for well stimulation fluids and the limited presence of local players coupled with the Governments push for localization presents a great opportunity for the private sector to invest in establishing facilities for well stimulation fluids in Saudi Arabia.
Beyond the facilities for well stimulation fluids, other opportunities exist across the value chain including:
- Establishing production facilities for key input materials (e.g., HF and borates)
- Providing transportation services and storage & loading equipment (e.g., conveyor units and jumbo bags)
- Providing disposal services for stimulation chemicals
- Providing inspection, maintenance and after sales services
To be determined by the investor
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Open to starting the project as soon as possible
- Pure private sector model
- Joint venture with local player
Contact Our Facilities for well stimulation fluids Expert
Thank you for your interest in the Invest Saudi.
We received your inquiry, and we will get back to you shortly.