Saudi Arabia to Boost Role of Petrochemical Sector in National Economy

A Saudi Aramco sign is pictured at an oil facility in Abqaiq, Saudi Arabia, October 12, 2019. (Reuters)
A Saudi Aramco sign is pictured at an oil facility in Abqaiq, Saudi Arabia, October 12, 2019. (Reuters)
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Saudi Arabia to Boost Role of Petrochemical Sector in National Economy

A Saudi Aramco sign is pictured at an oil facility in Abqaiq, Saudi Arabia, October 12, 2019. (Reuters)
A Saudi Aramco sign is pictured at an oil facility in Abqaiq, Saudi Arabia, October 12, 2019. (Reuters)

Saudi Aramco and France's TotalEnergies awarded Engineering, Procurement, and Construction (EPC) contracts for the $11 billion "Amiral" complex, a petrochemicals facility expansion at the SATORP refinery.  

The new deal is a step towards Riyadh's expansion in promoting petrochemical products for the future and boosting its role in the national economy.  

The award of EPC contracts for primary process units and associated utilities marks the start of construction work on the joint petrochemical expansion following the final investment decision in December 2022.  

The signing ceremony was attended by Aramco CEO Amin Nasser, TotalEnergies CEO Patrick Pouyanne, Minister of Land, Infrastructure and Transport of South Korea Won Hee-ryong, government officials from Saudi Arabia, France, and South Korea, and company executives from Aramco, TotalEnergies and EPC firms.  

Mixed values  

The new complex will be integrated with the existing SATORP refinery in Jubail. It aims to house one of the giant mixed-load steam crackers in the Gulf, which can produce 1,650 kilotons per annum of ethylene and other industrial gases.  

The expansion is expected to attract more than $4 billion in additional investment in various 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.  

Industry  

Nasser said that the SATORP complex has proven over the past years that it is among the best in the Middle East regarding operational, commercial, and environmental performance.  

He expected the new project to add value to the refining, chemicals, and marketing system in the country and worldwide, especially in converting liquids into chemicals.  

He indicated that the Amiral project also contributes to the development of the industrial system, in line with Saudi Vision 2030.  

For his part, Pouyanne said that the expansion project reinforces the exemplary relationship that the two companies have enjoyed for several decades in Saudi Arabia.  

SATORP CEO Abdullah al-Suwailem told Asharq Al-Awsat that the project achieves sustainability and supports the national industry by converting part of the fuel into petrochemical products to support the national economy.



Oil Edges up on Potential US Tariff Exemptions on Cars, Pick-up in China Crude Imports 

A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)
A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)
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Oil Edges up on Potential US Tariff Exemptions on Cars, Pick-up in China Crude Imports 

A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)
A general view of oil tanks located near the Teltowkanal canal in Berlin, Germany, 10 April 2025. (EPA)

Oil prices inched higher on Tuesday, supported by new tariff exemptions floated by US President Donald Trump and a rebound in China crude oil imports in anticipation of tighter Iranian supply.

Brent crude futures gained 12 cents, or 0.2%, to $65 per barrel by 0350 GMT, while US West Texas Intermediate crude was up 13 cents, or 0.2%, to $61.66.

"Trump granted exemptions on electronic tariffs and signaled an auto tariff relief, both of which are seen as setbacks from the previously announced import levies, hence, providing some relief to risk assets, including oil," said independent market analyst Tina Teng.

"However, the rally in stocks and growth-sentiment commodities is skeptical, as his policy is unpredictable."

In the latest development in Trump's whipsawing trade war, he said he was considering a modification to the 25% tariffs imposed on foreign auto and auto parts imports from Mexico, Canada and other places.

The vacillating US trade policies have created uncertainty for global oil markets and pushed OPEC on Monday to lower its demand outlook for the first time since December.

The Trump administration had announced on Friday that it would grant exclusions from tariffs on smartphones, computers and some other electronic goods, most of which are imported from China. That drove both oil benchmarks to settle up slightly higher on Monday.

On Sunday, Trump said he would announce the tariff rate on imported semiconductors over the next week and a Monday Federal Register filing showed the administration had begun an investigation into imports of semiconductors on April 1.

"The market is digesting fast-moving policy developments on the tariff front, while balancing them with nuclear talks between the US and Iran," said ING analysts in a Tuesday note.

"Clearly, the market is more focused on tariffs and what they mean for oil demand."

US Energy Secretary Chris Wright said on Friday the United States could stop Iranian oil exports as part of Trump's plan to pressure Tehran over its nuclear program.

Also supporting prices were data on Monday showing that China's crude oil imports in March were up nearly 5% from a year earlier, as arrivals of Iranian oil surged in anticipation of tighter US sanctions enforcement.