Saudi Aramco and TotalEnergies have agreed to invest $11 billion (AED40.37 billion) in building a world-scale petrochemical facility in Jubail on Saudi Arabia’s eastern coast.
The ‘Amiral’ complex will be owned, operated, and integrated with the existing Saudi Aramco TotalEnergies Refining and Petrochemical Company (SATORP) refinery in the location.
Construction is scheduled to begin in early 2023 with a target of starting commercial operation in 2027. Aramco (62.5 percent) and TotalEnergies (37.5 percent) will fund $4 billion of the total $11 billion investment through equity.
The facility will enable SATORP to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher-value chemicals, helping to advance Aramco’s liquids-to-chemicals strategy.
The complex will comprise a mixed feed cracker capable of producing 1.65 million tons per annum of ethylene, the first in the region to be integrated with a refinery. 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.
Amin Nasser, Chief Executive Officer, Saudi Aramco, said: “Our long-standing relationship with TotalEnergies has been further strengthened with 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.”
Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, 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.”
Eventually, the complex will provide feedstock to other petrochemicals and specialty chemical plants, located in the Jubail industrial area, which will be built, owned and operated by other downstream investors, entailing an estimated additional $4 billion of investment. This will support the establishment of key manufacturing industries such as carbon fibers, lubes, drilling fluids, detergents, food additives, automotive parts and tires.
The SATORP complex, when fully built, is expected to create 7,000 local direct and indirect jobs. The investment decision is subject to customary closing conditions and approvals.
SATORP, the first joint venture between the two energy companies, was established in June 2008 to build a refining and petrochemical complex in Jubail II industrial city. The refinery, whose capacity increased from 400,000 barrels per day (bpd) of crude oil at its start-up in 2014 to 460,000 bpd today, is recognised as one of the most efficient in the world.
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