Saudi Aramco and Total have signed a joint development agreement for the FEED for a giant petrochemical complex in Jubail, Saudi Arabia.
The world-class complex will be located next to the SATORP refinery, operated by Saudi Aramco and Total, in order to fully exploit operational synergies. It will comprise a mixed-feed cracker – the first in the Arabian Gulf region to be integrated with a refinery – with a capacity of 1.5 million tonnes per year of ethylene and related high-added-value petrochemical units.
The $5 billion project is scheduled to start-up in 2024.
The project will also provide feedstock for other petrochemical and specialty chemical plants located in the Jubail industrial area and beyond, representing an additional $4 billion investment by third-party investors.
Amin H. Nasser, CEO of Saudi Aramco, says: 'The petrochemicals sector has been undergoing significant growth globally and is one of the future growth engines. Thus, SATORP's second-phase expansion represents a significant value addition in Saudi Aramco's downstream strategy to maximise the full value of our vast portfolio and position the Kingdom as a chemicals manufacturing and exports hub.'
Patrick Pouyanné, chairman and CEO of Total, says: '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.
'This world-class complex also fits with our strategy to expand in petrochemicals by maximising the synergies within our major platforms, leveraging low-cost feedstocks and taking advantage of the fast-growing Asian polymer market.'
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