Saudi Arabian Oil Company (Aramco) and TotalEnergies will join forces to build a new petrochemicals complex in Saudi Arabia, the companies said on Thursday.
The project involves investment of about $11 billion, of which $4 billion will be funded through equity by Aramco (62.5 per cent) and TotalEnergies (37.5 per cent), the statement said.
The investment decision is subject to closing conditions and approvals, with construction scheduled to begin in the first quarter of 2023 and commercial operation targeted for 2027.
The planned Amiral complex, integrated with the existing Saudi Arabia Total Refining and Petrochemical (SATORP) refinery located in Jubail on Saudi Arabia’s eastern coast, will be owned and operated by Aramco and TotalEnergies.
The complex will comprise of a mixed feed cracker capable of producing 1.65 million tonnes per annum of ethylene.
It will also include two state-of-the-art polyethylene units using advanced dual loop technology, a butadiene extraction unit, and other associated derivatives units.
The overall complex, including adjacent facilities, is expected to create 7,000 jobs locally.
The petrochemicals facility will enable SATORP to convert its refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher-value chemicals.
The complex will eventually provide feedstock to other petrochemicals and speciality chemical plants in the Jubail industrial area, requiring an estimated $4 billion of additional investment.
Aramco President & CEO, Amin H. Nasser, said: “Our long-standing relationship with TotalEnergies has been further strengthened by this important project, which represents an opportunity for us to showcase the potential for cutting edge liquids to chemicals technologies that support the circular economy. With this collaboration we aim to expand the value chain by producing advanced chemicals more efficiently than ever before, accelerating industrial progress in the Kingdom.”
TotalEnergies Chairman and CEO Patrick Pouyanné added: “We are delighted to write a new page of our joint history by launching this expansion project, building on the successful development of SATORP, our biggest and most efficient refining and petrochemicals platform in the world. It also deepens the exemplary relationship between our two companies over many decades in the Kingdom of Saudi Arabia. This world-class complex also fits with our strategy to expand sustainably in petrochemicals by maximizing the synergies within our major platforms.”
