Saudi Arabian Oil Co. (Aramco) and TotalEnergies SE have awarded the rights for the building of an $11-billion petrochemicals complex in Saudi Arabia they tout as the Gulf’s biggest mixed-load steam cracker.
The Amiral complex will be integrated with the SATORP refinery on the kingdom’s eastern coast to enable the already operational plant to convert off-gases and naphtha it produces, as well as ethane and natural gasoline from Aramco, to higher value chemicals, according to the announcement of the final investment decision December 15, 2022.
It is targeted to start operation 2027.
Hyundai Engineering & Construction Co. Ltd. has received the contract for “a mixed feed cracker and utilities, with a nameplate capacity of 1,650 kta [kilo tons per annum] of ethylene and related industrial gases, and utilities, flares and interconnecting systems that support main packages within the facilities”, the partners said in a press release Saturday.
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Another contract has gone to Maire Tecnimont SPA “for two polyethylene units using Advanced Dual Loop technology, with a nameplate capacity of 500 kta each, and the derivative units”.
Sinopec Engineering Group Saudi Co. Ltd. has been picked for the complex’s tank farm, while Gulf Consolidated Contractors Co. has been signed for the transfer pipelines. Mohammed Ali Al-Suwailem Trading & Contracting Co. has been chosen for industrial support facilities. Mofarreh Marzouq Al Harbi & Partners Co. Ltd. will prepare the site, while Mobarak M. Al Salomi & Partners for Contracting Co. has been selected for temporary construction facilities.
“Integrated with the SATORP existing refinery in Jubail, the new petrochemical complex will house the largest mixed-load steam cracker in the Gulf, with a capacity to produce 1.65 million tons of ethylene and other industrial gases per year”, the media statement said.
Aramco and TotalEnergies expect the petrochemicals complex to support manufacturers of automotive parts, carbon fibers, detergents, drilling fluids, food additives and lubes, the partners.
Some of the hydrogen that will be produced by the complex will also replace the methane used to fuel SATORP furnaces, according to a project profile on TotalEnergies’ website.
The December announcement also noted, “In July 2022, SATORP was the first MENA [Middle East and North Africa region] refinery to be certified ISCC+, an international recognition towards its circular initiatives, such as the recycling of plastic and used cooking oil”.
Aramoc and its French partner project about 7,000 direct and indirect jobs to be offered for the project.
The signing of the engineering, procurement and construction contracts happened Saturday in Dhahran city with the attendance of Aramco president and chief executive Amin H. Nasser and TotalEnergies chair and chief executive Patrick Pouyanne.
“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.
The costs of the petrochemicals complex will be covered by equity: 62.5 percent or $4 billion by Aramco and the rest by TotalEnergies.
In other recent petrochemicals projects by the two companies, Aramco and its partners on March 29 launched construction for an integrated refinery in China’s Panjin city, while TotalEnergies announced July 21, 2022 the startup of its ethane cracker in Texas state that can produce one million tons of ethylene yearly.
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