JEDDAH, SAUDI ARABIA: The Saudi Arabian Oil Company (Aramco) and TotalEnergies have taken the ultimate funding decision for the development of a world scale petrochemical facility in Saudi Arabia.
The project alone represents an funding of round $11 billion, of which $4 billion will be funded through fairness by Aramco (62.5%) and TotalEnergies (37.5%). Its construction is scheduled to start throughout the primary quarter of 2023 with commercial operation focused to start in 2027.
The Amiral complex will be owned, operated, and built-in with the existing SATORP refinery located in Jubail on Saudi Arabia’s eastern coast. The funding decision is topic to customary closing conditions and approvals.
The petrochemical facility will allow SATORP to transform internally produced refinery off-gases and naphtha, in addition to ethane and pure gasoline supplied by Aramco, into higher worth chemicals, serving to to advance Aramco’s liquids to chemicals strategy.
The complex will comprise of a mixed feed cracker able to producing 1.65 million tons per annum of ethylene, the primary inside the area to be built-in with a refinery.
It will additionally include two state-of-the-art polyethylene units utilizing Advanced Dual Loop technology, a butadiene extraction unit, and different related derivatives units.
The complex will present feedstock to different petrochemical and specialty chemical plants, located inside the Jubail industrial area, which will be built, owned and operated by globally famend downstream investors, entailing an estimated additional $4 billion of investments.
This will support the institution of key manufacturing industries such as carbon fibers, lubes, drilling fluids, detergents, meals additives, automotive parts and tires.
The overall complex, together with adjoining facilities, is anticipated to create 7,000 native direct and oblique jobs.
In July 2022, SATORP was the primary MENA refinery to be licensed ISCC+, an worldwide recognition towards its round initiatives, such because the recycling of plastic and used cooking oil. A first batch of recycled plastic was processed by the refinery in November 2022.
Saudi Aramco Chief Executive Officer Amin H. Nasser said: “Our long-standing relationship with TotalEnergies has been additional strengthened by this important project, which represents an alternative for us to showcase the potential for cutting edge liquids to chemicals applied sciences that support the round economy.
With this collaboration we aim to expand the worth chain by producing superior chemicals extra effectively than ever before, accelerating industrial progress inside the Kingdom.”
Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies said: “We are delighted to write a brand new web page of our joint historical past by launching this expansion project, constructing on the profitable development of SATORP, our biggest and most environment friendly refining & petrochemicals platform inside the world.
It additionally deepens the exemplary relationship between our two companies over many decades inside the Kingdom of Saudi Arabia. This world-class complex additionally fits with our technique to expand sustainably in petrochemicals by maximizing the synergies inside our main platforms.”