Total, Saudi Aramco build $5 billion petrochemical complex in Jubail
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Total, Saudi Aramco to build $5 billion petrochemical complex in Jubail

5:04 AM, 11th April 2018
Total, Saudi Aramco to build $5 billion petrochemical complex in Jubail
Total and Saudi Aramco signing the memorandum of understanding.

PARIS, FRANCE: Total SA and Saudi Aramco have signed a memorandum of understanding (MoU) to build a giant petrochemical complex in Jubail, Saudi Arabia. 

The MoU was signed during the official visit to Paris by Crown Prince of Saudi Arabia, HRH Mohammed bin Salman.

The complex will be integrated downstream of the Satorp refinery, a joint venture between Saudi Aramco (62.5 percent) and Total (37.5 percent) 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 percent 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 speciality 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 tonnes 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. 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,” said Amin Nasser, president and chief executive officer of Saudi Aramco.

“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. 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,” added Patrick Pouyanne, chairman and CEO of Total.

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