Aramco, Total ink agreement for FEED of $9bn mega petrochemical complex in Jubail

In Dhahran, Amin H Nasser, president and CEO of Saudi Aramco, and Patrick Pouyanné, chairman and CEO of Total, witnessed the signing of the joint development agreement (JDA) for the front-end engineering and design (FEED) of a giant petrochemical complex in Jubail, on Saudi Arabia’s eastern coast.

Bernard Pinatel (sitting, left), president, refining and chemicals, Total, and Abdulaziz Al Judaimi (sitting, right), senior vice president, downstream, Saudi Aramco, sign the joint development agreement in the presence of Amin H Nasser (standing, right), president and CEO of Saudi Aramco, and Patrick Pouyanné, chairman and CEO of Total.
Bernard Pinatel (sitting, left), president, refining and chemicals, Total, and Abdulaziz Al Judaimi (sitting, right), senior vice president, downstream, Saudi Aramco, sign the joint development agreement in the presence of Amin H Nasser (standing, right), president and CEO of Saudi Aramco, and Patrick Pouyanné, chairman and CEO of Total.

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 $5bn and is scheduled to start-up in 2024.

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

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

Nasser said: “SATORP’s second-phase expansion represents a quantum leap in Saudi Aramco’s downstream strategy to maximise our 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. We are pleased to celebrate with Total this latest milestone in the SATORP journey.

Pouyanné said: “We are delighted to write a new page of our joint history by launching a new giant project, building on the successful development of SATORP, our biggest and most efficient refinery in the world. This world-class complex also fits with our strategy to expand in petrochemicals by maximising the synergies within our major platforms, leveraging low-cost feedstocks and taking advantage of the fast growing Asian polymer market.”

For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.

For all the latest refining and petrochemical news from the Middle East countries, follow us on Twitter and LinkedIn, like us on Facebook.

You may also like

BASF regains lead in ICIS Top 100 Chemical Companies ranking
Coming in second was 2018’s leader, China-based Sinopec with $63.2bn in chemicals sales
Specialty chemicals: The next big opportunity in the Arabian Gulf region
The specialty chemical sector holds a huge potential and has largely been underdeveloped across the GCC region. Regional chemical players need to be ready to employ a number of measures in order to become successful in the specialty chemical business, especially in the post-pandemic environment, comments Dr Abdulwahab Al-Sadoun
Albemarle publishes enhanced annual sustainability report
This sustainability report marks a renewal of Albemarle's sustainability journey forward
Sipchem product prices pressured by soft demand, expects positive figures in Q3 2020, says CEO
The petrochemicals industry saw improved demand and slightly better prices by end of June 2020

MOST POPULAR