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Aramco and TotalEnergies to build $11bn petchem complex in Jubail

Oil prices have surged over 14 percent in July month on month, the biggest monthly percentage increase since January 2022

Saudi Arabian Oil Company (Aramco) and France’s TotalEnergies will construct a petrochemical facility in Saudi Arabia for around $11 billion. 

The “Amiral” complex will be owned, operated, and integrated with the existing Satorp refinery located in Jubail on the eastern coast, the companies said in a joint statement. 

A total of $4 billion will be funded through equity by Aramco (62.5 percent) and TotalEnergies (37.5 percent). 

Construction is scheduled to begin during the first quarter of 2023, with commercial operation targeted to start in 2027.

The petrochemical facility will enable Satorp to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher-value chemicals, helping to advance Aramco’s liquids-to-chemicals strategy.

The complex will comprise 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 polyethylene units using advanced dual loop technology, a butadiene extraction unit, and other associated derivatives units.

Aramco president and CEO, Amin H. Nasser, said: “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.”

TotalEnergies chairman and CEO, Patrick Pouyanné, added that the new complex fits with its strategy to expand sustainably in petrochemicals by maximising the synergies within its major platforms.

The complex will provide feedstock to other petrochemical and specialty chemical plants in the Jubail industrial area, which will be built, owned and operated by globally renowned downstream investors, entailing an estimated additional $4 billion of investments. 

This will support the establishment of key manufacturing industries such as carbon fibers, lubes, drilling fluids, detergents, food additives, automotive parts and tires.

The overall complex, including adjacent facilities, is expected to create 7,000 local direct and indirect jobs.

The statement noted that the investment decision is subject to customary closing conditions and approvals.