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Saudi Arabia: Saudi Aramco & Total Sign Joint Development Agreement

Saudi Arabia: Saudi Aramco & Total Sign Joint Development Agreement

Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco has signed the joint development agreement with Patrick Pouyanné, Chairman and Chief Executive Officer of Total, for the front-end engineering and design (FEED) of a giant petrochemical complex in Jubail, on Saudi Arabia’s eastern coast.

In order to fully exploit operational synergies, the world-class complex which was announced in April 2018, will be located next to the SATORP refinery, operated by Saudi Aramco (62.5%) and Total (37.5%). A mixed-feed cracker (50% ethane and refinery off-gases) will feature the facility which will be the first in the Gulf region to be integrated with a refinery, having a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units. Representing an investment of around $5 billion, the project is scheduled to start-up in 2024.

Feedstock to other petrochemical and specialty chemical plants located in the Jubail industrial area and beyond, will be provided by the project, which will represent an additional $4 billion investment by third party investors benefitting to the Saudi economy. Anticipated to create 8,000 local direct and indirect jobs, the overall complex will represent an investment of approximately $9 billion.

Saudi Aramco Chief Executive Officer Amin H. Nasser said that SATORP’s second-phase expansion represents a quantum leap in Saudi Aramco’s downstream strategy to maximize their 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’re pleased to celebrate with Total this latest milestone in the SATORP journey.”

“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,” said Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “This world-class complex also fits with our strategy to expand in petrochemicals by maximizing the synergies within our major platforms, leveraging low-cost feedstock and taking advantage of the fast growing Asian polymer market.” PWKD10102018

Last modified onWednesday, 10 October 2018 13:53
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