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Aramco, TotalEnergies Sign $11 bln Contract on Petrochemicals Complex in Saudi Arabia

Aramco and TotalEnergies signing ceremony for the “Amiral” complex, a future petrochemicals facility expansion at the SATORP refinery in Saudi Arabia, on June 24. Photo: Aramco website
Aramco and TotalEnergies signing ceremony for the “Amiral” complex, a future petrochemicals facility expansion at the SATORP refinery in Saudi Arabia, on June 24. Photo: Aramco website
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Aramco, TotalEnergies Sign $11 bln Contract on Petrochemicals Complex in Saudi Arabia

Aramco and TotalEnergies signing ceremony for the “Amiral” complex, a future petrochemicals facility expansion at the SATORP refinery in Saudi Arabia, on June 24. Photo: Aramco website
Aramco and TotalEnergies signing ceremony for the “Amiral” complex, a future petrochemicals facility expansion at the SATORP refinery in Saudi Arabia, on June 24. Photo: Aramco website

Saudi Aramco and TotalEnergies have signed an $11 billion contract to start building a new petrochemicals complex in Saudi Arabia, the two companies said in a joint statement on Saturday.

"Aramco and TotalEnergies today awarded Engineering, Procurement and Construction (EPC) contracts for the $11 billion "Amiral" complex, a future world-scale petrochemicals facility expansion at the SATORP refinery in the Kingdom of Saudi Arabia," the statement read.

A signing ceremony took place in Dhahran attended by Amin H. Nasser, Aramco President and CEO, and TotalEnergies Chairman and CEO Patrick Pouyanné.

The award of EPC contracts for main process units and associated utilities marks the start of construction work on the joint petrochemical expansion, following the final investment decision in December 2022. Integrated with the existing SATORP refinery in Jubail, the new complex aims to house one of the largest mixed-load steam crackers in the Gulf, with a capacity to produce 1,650 kilotons per annum of ethylene and other industrial gases.

This expansion is expected to attract more than $4 billion in additional investment in a variety of industrial sectors, including carbon fibers, lubes, drilling fluids, detergents, food additives, automotive parts and tires. It is also expected to create around 7,000 local direct and indirect jobs.

“As part of Aramco’s growth strategy, the project is anticipated to contribute to value-addition opportunities in the Kingdom’s downstream ecosystem, and we thank the Ministry of Energy and the Ministry of Investment for their tremendous support via the Shareek program to make this multi-billion-dollar project a reality,” Nasser said.

As for Pouyanné, he said: “This expansion project reinforces the exemplary relationship that our two companies have enjoyed for several decades in the Kingdom of Saudi Arabia.”

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Taiwan Expects Small Impact from Trump Tariffs on Chip Exports

A chip is pictured at the Taiwan Semiconductor Research Institute (TSRI) at Hsinchu Science Park in Hsinchu, Taiwan, September 16, 2022. Reuters/Ann Wang/ File Photo
A chip is pictured at the Taiwan Semiconductor Research Institute (TSRI) at Hsinchu Science Park in Hsinchu, Taiwan, September 16, 2022. Reuters/Ann Wang/ File Photo
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Taiwan Expects Small Impact from Trump Tariffs on Chip Exports

A chip is pictured at the Taiwan Semiconductor Research Institute (TSRI) at Hsinchu Science Park in Hsinchu, Taiwan, September 16, 2022. Reuters/Ann Wang/ File Photo
A chip is pictured at the Taiwan Semiconductor Research Institute (TSRI) at Hsinchu Science Park in Hsinchu, Taiwan, September 16, 2022. Reuters/Ann Wang/ File Photo

Taiwan only expects a small impact from any tariffs imposed by the incoming government of US President-elect Donald Trump on semiconductor exports given their technological superiority, Economy Minister Kuo Jyh-huei said on Friday.
Home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., the island is a key link in the global technology supply chain for companies such as Apple and Nvidia, according to Reuters.
But Taiwanese policymakers have warned new US tariffs against all countries from the Trump administration could curb economic growth this year for the export-dependent economy.
Trump has pledged a blanket tariff of 10% on global imports into the United States and a far higher 60% tariff on Chinese goods.
In late November, he specifically pledged a 25% tariff on imports from Canada and Mexico when he takes office on Jan. 20.
Asked at a news conference about the impact on Taiwan's export orders of Trump's tariffs, Kuo said it would not much affect the chip sector.
“For our semiconductors and advanced processes, there is an advantage of technological leadership and that cannot be replaced, and so the impact will be small,” he added.
Taiwan will also help companies relocate supply chains to the United States as needed, away from where there might be high import tariffs, Kuo said.
“Now we see that we should be able to develop the aerospace supply chain industry in the United States, and do some joining up with the US aerospace companies, so that some of Taiwan's aerospace research and development centres can be moved there,” he added.