The Saudi Arabian Oil Company (“Aramco”) and TotalEnergies have made the final investment decision (FID) for the construction of a world scale petrochemical facility in Saudi Arabia. The “Amiral” complex will be controlled, run, and integrated with the current SATORP refinery that is situated in Jubail on the eastern coast of Saudi Arabia. The choice to invest is contingent on the usual approvals and closing requirements.
The petrochemical complex 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 using Advanced Dual Loop technology, a butadiene extraction unit, and other associated derivatives units.
Aramco (62.5%) and TotalEnergies (37.5%) will each invest $4 billion in the project, which is estimated to cost $11 billion in total. Its construction is slated to start in the first quarter of 2023, and it’s expected to start operating commercially in 2027.
Eventually, the complex will supply feedstock to additional petrochemical and specialty chemical plants in the Jubail industrial area, which will be constructed, owned, and operated by renowned downstream investors and will cost an estimated additional $4 billion in investments. These plants will be situated in the Jubail industrial area. The industrial sector of Jubail will house these plants. Important manufacturing sectors like those for carbon fibers, lubricants, drilling fluids, detergents, food additives, automobile parts, and Tyres will benefit from this.
A total of 7,000 local direct and indirect jobs are anticipated to be generated by the complex, including nearby facilities.
SATORP became the first refinery in the MENA region to receive ISCC+ certification in July 2022. This certification is a mark of excellence for circular projects like the recycling of wasted cooking oil and plastic. The refinery processed its first batch of recycled plastic in November 2022.
Saudi Aramco Chief Executive Officer Amin H. Nasser said: “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. With this collaboration we aim to expand the value chain by producing advanced chemicals more efficiently than ever before, accelerating industrial progress in the Kingdom.”
Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies said: “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 & petrochemicals platform in the world. It also deepens the exemplary relationship between our two companies over many decades in the Kingdom of Saudi Arabia. This world-class complex also fits with our strategy to expand sustainably in petrochemicals by maximizing the synergies within our major platforms.”