Saudi Aramco and France’s TotalEnergies have signed an $11bn EPC contract to begin the construction of Amiral, a state-of-the-art petrochemicals complex in Saudi Arabia.
The petrochemicals facility will be integrated with the existing Saudi Aramco Total Refining and Petrochemical (SATORP) refinery in Jubail. Once Amiral is completed, it will house the largest mixed-load steam cracker in the Gulf region.
Meanwhile, the facility’s planned capacity for producing ethylene and other industrial gases is set at 1.65 million tons annually.
Strategic partnership
The contract was signed by Amin Nasser, president and CEO, Saudi Aramco; and Patrick Pouyanne, chairman and CEO, TotalEnergies, in ceremonies held recently in Saudi.
“Today we are taking a major step forward in further strengthening the partnership between TotalEnergies and Aramco, with the SATORP expansion project being the latest in a longstanding history of collaboration of almost five decades between both companies,” said Nasser.
“As part of Aramco’s growth strategy, the project is anticipated to contribute to value-addition opportunities in the Kingdom’s downstream ecosystem. 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,” Aramco’s CEO added.
Commenting on the agreement, TotalEnergies’ Pouyanné said, “This landmark agreement opens a new page in our shared history with Aramco, which we are delighted to be associated with once again. We would like to thank the Ministry of Energy of the Kingdom of Saudi Arabia for its support throughout the development of this world-class project.”
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Multiplier effect
The expansion of Aramco’s petrochemicals complex is expected to attract more than $4bn in additional investment in a variety of industrial sectors. It is also expected to create around 7,000 local direct and indirect jobs.
Among the companies who were awarded EPC contracts include: Hyundai Engineering and Construction Co. Ltd.; Maire Tecnimont; Sinopec Engineering (Group) Saudi Co. Ltd.; Gulf Consolidated Contractors Co.; Mohammed Ali Al-Suwailem Trading and Contracting Co.; Mofarreh Marzouq Al Harbi and Partners Co. Ltd.; and Mobarak M. Al-Salomi and Partners for Cont. Co.
The multi-billion-dollar contract awarded by Saudi Aramco and TotalEnergies marks an important milestone in the petrochemical industry in the region. With construction on the “Amiral” complex set to begin, both companies are poised to meet the rising global demand for petrochemical products, estimated to reach $1.01tn in 2030, while simultaneously bolstering their market positions.
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