Aramco and Total Energies sign $11 billion petrochemical complex contract in Saudi Arabia
Aramco and Total Energies said in a joint statement today that they have signed an $11 billion contract to begin construction on a new petrochemical complex in Saudi Arabia.
Construction Work Commences
Aramco said in a statement today Saturday that the award of contracts for the design, supply and construction of major processing plants and associated facilities represents the commencement of construction work for the joint petrochemical expansion following a final investment decision in December 2022.
Joint Venture with SATORP
The Amiral complex will be owned and operated and integrated with the Saudi Aramco Total Refining and Petrochemical Company (SATORP) refinery at Jubail on the Kingdom’s east coast.
Expected Investment and Job Creation
This expansion is expected to attract more than $4 billion in additional investment in various industries, including: carbon fibers, lubricating oils, drilling fluids, detergents, food additives, auto parts and tires. 7,000 direct and indirect local jobs.
Comments from Saudi Aramco CEO
Commenting on this, Saudi Aramco President and CEO Amin bin Hassan Al Nasser said: “Today we are taking a big step forward in strengthening the partnership between Total and Aramco as this expansion project at SATORP is the latest in a long history of collaboration for nearly half a century between two companies.”
Al Nasser added: “As you know, the SATORP complex in the industrial city of Jubail has established itself in recent years as one of the best in the Middle East in terms of operational, commercial and environmental performance. As part of Saudi Aramco’s growth strategy, the new Amiral project is expected to build on the strengths that the SATORP complex has and will significantly contribute to adding value to the refining, chemicals and marketing system in the Kingdom and worldwide, especially the goal of converting liquids into chemicals, and it will also contribute to the development of the industrial system in the Kingdom in line with Vision 2030.”
Design, supply and construction contracts were awarded to: Hyundai Engineering & Construction Co., Ltd. – for the construction of a mixed feed cracking unit and engineering networks with a capacity of 1.65 million tons of ethylene per year, associated industrial gases, utilities, flare plants and related systems supporting the main units within the Facilities, and the Company (Mir Tekhremont) – for construction of two 500 kt/uni advanced dual ring polyethylene plants in addition to the construction of derivative plants, and Sinopec Engineering (Group) Saudi Arabia Limited for tank farm operations and integration with SATORP.
He also awarded Gulf Consolidated Contractors for the construction of transport pipelines, Mohammed Ali Al Suwaylem for the construction of ancillary industrial facilities, Mufreh Marzouq Al-Harbi and Partners Limited for site preparation, and Mubarak Mari. Contracting company “Al-Salumi and Partners” – for temporary construction projects.