Saudi Aramco and Total Ink MoU to Build Petrochemical Complex in Saudi Arabia

Saudi Aramco and France’s Total have signed a memorandum of understanding (MoU) to build a $9-bn petrochemical complex in Jubail, Saudi Arabia.

The complex will be integrated downstream of the SATORP refinery, a joint venture between Saudi Aramco (62.5%) and Total (37.5%), in a move designed to fully exploit operational synergies. The complex will comprise a mixed-feed steam cracker (50% ethane and refinery off-gas) with an annual capacity of 1.5 million tonnes of ethylene and associated petrochemical units.

The capacity of SATORP refinery has increased from 400,000-bpd at its start-up in 2014 to 440,000-bpd.

The two partners are planning to start the front-end engineering and design (FEED) in the third quarter of 2018. “The project will represent an investment of around $5-bn. In total, $9-bn will be invested, creating 8,000 local direct and indirect jobs. The project will produce more than 2.7 million metric tons of high value chemicals,” Total said in a press note.

Total’s Chairman and CEO Mr. Patrick Pouyanné said, “This project illustrates our strategy of maximising the integration of our large refining and petro-chemical platforms and of expanding our petrochemical operations from low-cost feedstock to take advantage of the fast-growing Asian polymer market”.

Saudi Aramco’s President and CEO Mr. Amin Nasser added, “Our joint venture SATORP is a remarkably successful model of industry partnership and we are keen to build on this success to further underpin Saudi Aramco’s strategy to expand its capacity in the chemicals sector by 2030.”