Tuesday, June 6, 2023

Saudi petrochemicals factory to be built for $11 billion by Aramco and TotalEnergies


A world-scale petrochemical facility will be built in Saudi Arabia thanks to a final investment decision made by the Saudi Arabian Oil Company (Aramco) and TotalEnergies.

The “Amiral” complex, which is situated in Jubail on the eastern coast of Saudi Arabia, will be owned, run, and integrated with the current SATORP refinery. 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 include a mixed feed cracker, the first in the area to be linked with a refinery, that can produce 1.65 million tpy of ethylene. Additionally, it will have two cutting-edge polyethylene units using Advanced Dual Loop technology, a unit for butadiene extraction, and additional units for related derivatives.

Aramco (62.5%) and TotalEnergies (37.5%) will provide equity funding for US$4 billion of the project’s estimated US$11 billion total investment. Its construction is expected to commence in the first quarter of 23 with commercial operation set to begin in 2027.

Future petrochemical and speciality chemical plants in the Jubail industrial area will receive feedstock from the complex; these plants will be constructed, acquired, and run by famous downstream investors, with an anticipated extra investment of US$4 billion. This would help the growth of important manufacturing sectors like tyres, drilling fluids, detergents, food additives, carbon fibers, lubricants, and detergents.


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