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In Dhahran, Amin H Nasser, president and CEO of Saudi Aramco, and Patrick Pouyanné, chairman and CEO of Total, witnessed the signing of the joint development agreement for the front-end engineering and design of a giant petrochemical complex in Jubail, on
Announced in April 2018, the worldclass complex will be located next to the SATORP refinery, operated by Saudi Aramco (62.5%) and Total (37.5%), in order to fully exploit operational synergies. It will comprise a mixed-feed cracker (50% ethane and refinery off-gases) – the first in the Gulf region to be integrated with a refinery – with a capacity of 1.5 million tonnes per year of ethylene and related high-added-value petrochemical units. The project represents an investment of around $5bn and is scheduled to startup in 2024.
The project will provide feedstock to other petrochemical and specialty chemical plants located in the Jubail industrial area and beyond, representing an additional $4bn investment by third party investors benefitting to the Saudi economy. The overall complex will represent an investment of about $9bn and is expected to create 8,000 local direct and indirect jobs.
Nasser said: “SATORP’S second-phase expansion represents a quantum leap in Saudi Aramco’s downstream strategy to maximise our hydrocarbon resources and help position the kingdom as a chemicals manufacturing hub, thus supporting economic diversification.”
“Today’s signing will deliver on multiple levels, from high-value fuels and petrochemical products for consumers on three continents to meaningful job creation and local content development. We are pleased to celebrate with Total this latest milestone in the SATORP journey.”
Patrick Pouyanné, chairman and chief executive officer of Total said: “We are delighted to write a new page of our joint history by launching a new giant project, building on the successful development of SATORP, our biggest and most efficient refinery in the world. This worldclass complex also fits with our strategy to expand in petrochemicals by maximising the synergies within our major platforms, leveraging low-cost feedstocks and taking advantage of the fast growing Asian polymer market.”
Bernard Pinatel (sitting, left), president, refining and chemicals, Total, and Abdulaziz Al Judaimi (sitting, right), senior vice president, downstream, Saudi Aramco, sign the joint development agreement in the presence of Amin H Nasser (standing, right), president and CEO of Saudi Aramco, and Patrick Pouyanné, chairman and CEO of Total.