The Saudi Arabian Oil Company (Aramco) and TotalEnergies have reached a final investment decision (FID) for the construction of the $11bn Amiral petrochemical complex in Saudi Arabia.
The new petrochemical facility will be owned, operated, and integrated with the existing SATORP oil refinery in Jubail, located on the eastern coast of the country. The SATORP refinery, which is co-owned by Aramco and TotalEnergies, has been operating since 2014.
Through the integration with the Amiral petrochemical complex, the SATORP refinery will be able to convert internally produced refinery off-gases and naphtha and ethane and natural gasoline delivered by Aramco into higher value chemicals. This is expected to help advance the liquids to chemicals strategy of Aramco.
Aramco CEO Amin 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.”
According to the parties, the new petrochemical facility will feature a mixed feed cracker capable of an annual capacity of 1.65 million tons of ethylene. Besides, it will house two polyethylene units based on Advanced Dual Loop technology apart from a butadiene extraction unit, and other related derivatives units.
Aramco will have a 62.5% stake in the Amiral petrochemical complex, while TotalEnergies will hold the remaining stake of 37.5%.
Slated to break ground in Q1 2023, the complex is targeted to begin commercial operation in 2027.
Aramco and TotalEnergies expect the complex to ultimately supply feedstock to other petrochemical and specialty chemical plants in the Jubail industrial area.
The new petrochemical complex alongside adjacent facilities are anticipated to generate 7,000 direct and indirect jobs, said the parties.
TotalEnergies chairman and CEO Patrick Pouyanné 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 maximising the synergies within our major platforms.”
The investment decision on the Amiral petrochemical complex is subject to customary closing conditions as well as approvals.
