Saudi Arabian Oil Co. (Aramco) and TotalEnergies SE have awarded the rights to build an $11 billion petrochemical complex in Saudi Arabia that they believe will be the largest mixed-charge steam cracker in the Gulf.
The Amiral complex will be integrated with the SATORP refinery on the kingdom’s east coast to allow the already operational plant to convert the waste gases and naphtha it produces, as well as Aramco’s ethane and natural gasoline, into products higher value chemicals, according to the ad. of the final investment decision of December 15, 2022.
It is scheduled to come into operation in 2027.
Hyundai Engineering & Construction Co. Ltd. has been awarded the contract for “a mixed feed and utilities cracker, with a plate capacity of 1,650 kta [kilo tons per annum] of ethylene and related industrial gases, and utilities, flares and interconnection systems that support the main packages within the facilities,” the partners said in a press release on Saturday.
Another contract has been awarded to Maire Tecnimont SPA “for two polyethylene units with Advanced Dual Loop technology, with a plate capacity of 500 kta each, and the derived units”.
Sinopec Engineering Group Saudi Co. has been chosen. Ltd. for the complex’s tank farm, while Gulf Consolidated Contractors Co. has been signed for transfer pipelines. Mohammed Ali Al-Suwailem Trading & Contracting Co. has been chosen for industrial support facilities. Mofarreh Marzouq Al Harbi & Partners Co. Ltd. will prepare the site, while Mobarak M. Al Salomi & Partners for Contracting Co. has been selected for temporary construction facilities.
“Integrated with the existing SATORP refinery in Jubail, the new petrochemical complex will house the largest mixed charge steam cracker in the Gulf, with a capacity to produce 1.65 million tonnes of ethylene and other industrial gases per year” , the statement said.
Aramco and TotalEnergies expect the petrochemical complex to support manufacturers of auto parts, carbon fibers, detergents, drilling fluids, food additives and lubricants, the partners.
Some of the hydrogen the complex will produce will also replace the methane used to power the SATORP furnaces, according to a project profile on the TotalEnergies website.
The December announcement also noted: “In July 2022, SATORP was the first MENA [Middle East and North Africa region] ISCC+ certified refinery, an international recognition for its circular initiatives, such as the recycling of plastic and used cooking oil”.
Aramoc and its French partner project around 7,000 direct and indirect jobs to be provided by the project.
The signing of the engineering, procurement and construction contracts took place on Saturday in the city of Dhahran in the presence of Aramco Chairman and CEO Amin H. Nasser and TotalEnergies Chairman and CEO Patrick Pouyanne.
“As part of Aramco’s growth strategy, the project is expected to contribute to value-added opportunities in the Kingdom’s downstream ecosystem, and we thank the Ministry of Energy and the Ministry of Investments for their enormous support through the Shareek program to make this multi-billion dollar project a reality,” said Nasser.
The costs of the petrochemical complex will be covered by capital: 62.5 percent or $4 billion by Aramco and the rest by TotalEnergies.
In other recent petrochemical projects by the two companies, Aramco and its partners broke ground on March 29 for an integrated refinery in the Chinese city of Panjin, while TotalEnergies announced on July 21, 2022, the commissioning of of its ethane cracker in the state of Texas that can produce one million tons. of ethylene annually.
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