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.
