#Business #Company #Economy #Energy #Gas #Industry #Oil #Petroleum #TotalEnergies #SaoudiArabia
Denys Bédarride
Saturday 31 December 2022 Last update on Saturday, December 31, 2022 At 7:00 AM

The Saudi Arabian Oil Company ("Aramco") and TotalEnergies have made the final investment decision for the construction of a world-class petrochemical site in Saudi Arabia. The “Admiral” complex, owned and eventually operated by the SATORP refinery, located in Jubail on the eastern coast of the country, will be integrated into the existing site. The investment decision is subject to the usual conditions and approvals.

This petrochemical site will enable the SATORP refinery to process the gases and naphtha it produces, as well as the ethane and natural gasoline supplied by Aramco. This will enable the production of higher value-added chemicals, in line with Aramco’s refining-petrochemicals integration strategy.

The complex will include a mixed-feed steam cracker with a production capacity of 1.65 million tonnes of ethylene per year, which will be the very first to be integrated into a refinery in the region. The complex will also have two world-class polyethylene production units (using Advanced Dual Loop technology), a butadiene extraction unit and several other derivatives production units.

This project, which alone represents an investment of approximately $11 billion, including $4 billion financed with equity by Aramco (62.5%) and TotalEnergies (37.5%). Construction is due to begin in the first quarter of 2023 and the start of commercial operations is scheduled for 2027.

Eventually, the complex will supply feedstock to other petrochemical and specialty chemical plants in the Jubail Industrial Zone. These will be built, owned and operated by internationally renowned third-party investors, representing an estimated additional investment of $4 billion. This will support the creation of key industrial activities in various fields: carbon fibers, lubricants, special fluids, detergents, additives, automotive parts and tires.

The complex as a whole, with the sites developed downstream, should create 7,000 local, direct and indirect jobs.

In July 2022, SATORP became the first refinery in the Middle East/North Africa region to receive ISCC+ international certification for its circular economy projects, such as the recycling of plastics and used cooking oil. A first batch of recycled plastics was produced by the refinery in November 2022.

Amin H. Nasser, Chairman and CEO of Saudi Aramco, said, “This project further strengthens our long-standing relationship with TotalEnergies and gives us the opportunity to demonstrate the potential of cutting-edge liquids-to-chemicals technologies. at the service of the circular economy. Through this collaboration, we aim to extend the value chain by producing advanced compounds more efficiently than ever to accelerate the industrial development of the kingdom. »

and for his part, Patrick Pouyanné, Chairman and CEO of TotalEnergies, added: “ We are happy to write a new page in our common history thanks to the launch of this expansion project, which builds on the successful development of SATORP , our most efficient refining and petrochemicals platform in the world. It reinforces the exemplary relationship that has united our two companies for several decades in Saudi Arabia. This world-class complex is fully in line with our sustainable growth strategy in petrochemicals by optimizing synergies within our main platforms. »

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