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.”



Alkhorayef: Saudi Arabia Making Confident Strides Toward Localizing Automotive Industry

Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA
Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA
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Alkhorayef: Saudi Arabia Making Confident Strides Toward Localizing Automotive Industry

Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA
Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah. SPA

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef has said the Kingdom is making “confident strides” at an accelerated pace to localize the automotive industry.

Alkhorayef spoke on Wednesday at the groundbreaking ceremony for the Hyundai plant at King Salman Automotive Cluster in King Abdullah Economic City in Jeddah.

He said the Kingdom’s efforts will create added value for the national economy and enhance its global competitiveness in line with the objectives of Saudi Vision 2030.

The plant is being built under a strategic partnership between the Public Investment Fund (PIF) and Hyundai Motor Company, a move that supports the localization of the automotive industry in the Kingdom and advances economic diversification.

The minister described the initiative as an important milestone in the journey to localize the automotive industry due to its significant impact.

He added that it will enhance industrial capabilities, strengthen supply chains, localize production, and develop local content, meeting local and regional demand for automobiles and consolidating the Kingdom's position as a global hub for the automotive industry.

He praised PIF’s role in driving industrial transformation and empowering high-value sectors with tangible economic impact in the Kingdom and the region.

He also highlighted the importance of integrated efforts by all relevant government entities in advancing the localization of the automotive industry, including the establishment of the Hyundai plant.

He thanked the Ministries of Investment, Energy, and Finance; the Ministry of Economy and Planning; the National Industrial Development Center; and the Saudi Industrial Development Fund.

Alkhorayef stressed that the project aligns with the Kingdom's accelerating industrial goals and its vision to transform ambitions into reality.

The National Industrial Strategy aims to attract three global automotive manufacturers to produce 300,000 vehicles annually within a single industrial complex, a goal now realized with Hyundai joining Lucid and Ceer.

The factory is projected to produce 50,000 vehicles annually and contribute approximately $5 billion to the Kingdom's gross domestic product (GDP) by 2045.

Hyundai has had a presence in the Saudi market for over 40 years and currently holds the second-largest market share in the Kingdom’s automotive sector.