Saudi Aramco and Total Collaborate to Construct 9 Billion Dollar Petrochemical Complex

Saudi Arabia: Engineering Saudi Aramco and Total Collaborate to Construct 9 Billion Dollar Petrochemical Complex

09.10.2018Editor: Ahlam Rais

Capable of producing 1.5 million tonnes of ethylene per year, the complex will include the first mixed-feed cracker in the Gulf region to be integrated with a refinery.

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The project will provide feedstock to other petrochemical and specialty chemical plants located in the Jubail industrial area.
(Source: Deposit Photos)

Dhahran/Saudi Arabia – Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco and Patrick Pouyanné, Chairman and Chief Executive Officer of Total, recently signed the joint development agreement for the front-end engineering and design (Feed) of a giant petrochemical complex in Jubail, on Saudi Arabia’s eastern coast.

Announced in April 2018, the world-class complex will be located next to the Satorp refinery, operated by Saudi Aramco (62.5 %) and Total (37.5 %), in order to fully exploit operational synergies. It will comprise a mixed-feed cracker (50 % ethane and refinery off-gases) – the first in the Gulf region to be integrated with a refinery – with a capacity of 1.5 million tonnes per year of ethylene and related high-added-value petrochemical units. The project represents an investment of around 5 billion dollars and is scheduled to start-up in 2024.

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The project will provide feedstock to other petrochemical and specialty chemical plants located in the Jubail industrial area and beyond, representing an additional 4 billion dollar investment by third party investors benefitting to the Saudi economy.

The overall complex will represent an investment of approximately 9 billion dollars and is expected to create 8,000 local direct and indirect jobs.

Satorp’s second-phase expansion represents a quantum leap in Saudi Aramco’s downstream strategy to maximize its hydrocarbon resources and help position the Kingdom as a chemicals manufacturing hub, thus supporting economic diversification.

Today’s signing will deliver on multiple levels, from high-value fuels and petrochemical products for consumers on three continents to meaningful job creation and local content development.

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