An optimization model for guiding the petrochemical industry development in Saudi Arabia

Abstract

A mixed integer linear programming model is formulated for determining the optimum plan for the expansion of the Saudi Arabian petrochemical industry. The products selected for consideration fall into four categories: propylene derivatives, ethylene derivatives, synthesis gas derivatives, and aromatic derivatives. The model incorporates new variables and constraints, and realistic estimates of production costs, which are calculated based on local conditions in Saudi Arabia. For each production process, the unit production cost is assumed to be a function of production capacity. The input data for each product includes relevant production technologies, capacities, local production costs, and selling price. The solution of the model gives the recommended products under different scenarios of available capital investment and feedstock. The results are reported and analyzed.