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Saudi Aramco and French energy producer Total today signed a joint development agreement for the front-end engineering and design (FEED) work at their giant petrochemical complex in Jubail Industrial City.
Announced in April this year, the complex will be located next to the SATORP refinery, operated by Saudi Aramco (62.5 percent) and Total (37.5 percent), Aramco and Total said in a statement.
It will comprise a mixed-feed cracker with a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units. The project represents an investment of approximately $5 billion dollars and is scheduled to start-up in 2024.
The complex 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 The overall complex will represent an investment of approximately $9 billion and is expected to create 8,000 local direct and indirect jobs.
“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 maximize the full value of our vast resources portfolio and position the Kingdom as a chemicals manufacturing and exports hub," said Saudi Aramco CEO Amin Nasser.
The Saudi Aramco Total Refining and Petrochemical Company (SATORP) is the first joint venture of its kind between the two energy companies. It was established in June 2008 to build a refining and petrochemical complex in Jubail II industrial city.
The refinery's capacity has increased from 400,000 barrels per day (bpd) of crude oil at its start-up in 2014 to 440,000 bpd today.
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