Saudi Arabia’s state oil company Aramco and French energy giant TotalEnergies agreed on developing a petrochemical facility in Saudi Arabia, which is projected to cost around $11 billion, companies announced in a joint press release on Thursday.
The complex named “Amiral” will be owned, operated, and integrated with the existing SATORP refinery located in Jubail on Saudi Arabia’s eastern coast.
The petrochemical facility will allow SATORP to transform naphtha and refinery off-gases it produces domestically into higher-value chemicals as well as ethane and natural gasoline supplied by Aramco, furthering Aramco’s liquids to chemicals strategy.
The complex will comprise of 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, a butadiene extraction unit, and other associated derivatives units.
The project needs around $11 billion of investment, of which $4 billion will be funded by Aramco representing 62.5 share and TotalEnergies 37.5%.
The construction of the project is scheduled to begin during the first quarter of 2023 with commercial operation targeted to start in 2027.
“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,” Aramco President and CEO Amin Nasser was quoted as saying in the statement.
“This world-class complex fits with our strategy to expand sustainably in petrochemicals by maximizing the synergies within our major platforms,” TotalEnergies Chairman and CEO Patrick Pouyanné said.
