Aramco, Total Sign MoU to Build Petrochemical Complex in Jubail
During the official visit to Paris by Saudi Crown Prince Muhammad Bin Salman, deputy premier and minister of defense, Saudi Aramco and Total signed a memorandum of understanding to build a giant 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 Jubail, in a move designed to fully exploit operational synergies. This world-class refinery, whose capacity increased from 400,000-barrel-per-day at its start-up in 2014 to 440,000-barrel-per-day today, is recognized as being one of the most efficient in the world.
Located next to the SATORP refinery in the same industrial area, the complex will comprise a world-size mixed-feed steam cracker (50% ethane and refinery off-gas) with a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units. The project will represent an investment of around $5 billion. The two partners are planning to start the front-end engineering and design (FEED) in the third quarter of 2018.
The cracker will feed other petrochemical and specialty chemical plants representing an overall amount of $4 billion investment by third party investors.
In total, $9 billion 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.
“The agreement deepens the exemplary relationship enjoyed by our two companies over many decades. It is one that has evolved from a standard buyer-seller arrangement to one imbued with common interests to further develop and diversify our businesses,“ said Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco. “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.”
“This project illustrates our strategy of maximizing the integration of our large refining and petrochemical platforms and of expanding our petrochemical operations from low-cost feedstock, to take advantage of the fast growing Asian polymer market," said Patrick Pouyanné, Chairman and CEO of Total. “Furthermore, this project will enable us to strengthen our ties with Saudi Aramco, with whom we successfully operate our biggest and most efficient refinery in the world. Finally, it will contribute to the Vision 2030 of the Kingdom by creating 8,000 jobs and bringing in new high-added-value technologies.”
Source: Saudi Gazette
Owned by the Saudi Arabian Government, Saudi Aramco is a fully-integrated, global petroleum enterprise and a world leader in exploration and producing, refining, distribution, shipping and marketing. The Company manages the largest proven reserves of conventional crude oil, 260.1 billion barrels, and the fourth-largest gas reserves in the world, 275.2 trillion cubic feet.
Saudi Aramco, through its affiliate, Vela International Marine Ltd, owns and operates the world's second largest tanker fleet to help transport its crude oil production, which amounted to 1.3 million barrels per day in 2009. In addition to its headquarters in Dhahran, Saudi Arabia, Saudi Aramco, through its affiliates, has joint ventures and subsidiary offices in China, Japan, India, the Netherlands, the Republic of Korea, Singapore, the United Arab Emirates, the United Kingdom and the United States.
Saudi Aramco also refines and distributes oil products throughout the Kingdom of Saudi Arabia to meet domestic daily energy demands.
Total is one of the largest integrated oil and gas companies in the world, with activities in more than 130 countries and nearly 100,000 employees. Every day Total and its partners put their expertise to work in every part of the industry, including the Exploration & Production of oil and natural gas; Refining & Chemicals; Marketing & Services; and New Energies.
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