Reuters file photo
Saudi Aramco and TotalEnergies SE took a final investment decision on an $11 billion petrochemical project in Saudi Arabia, betting that demand for materials to make plastics will continue to climb.
The world’s largest oil-exporting nation is seeking alternative outlets for its vast supply of crude as countries gradually shift to cleaner energy. Aramco can add value to its sales by using the oil to make the building blocks for an enormous array of consumer items such as cars, computers and mobile phones.
The petrochemical project will be located alongside the partners’ Satorp refining complex at Jubail on the Persian Gulf coast. The so-called Amiral facility will include a 1.65 million-ton ethylene plant and is set to start operations in 2027, according to a joint statement. Aramco and Total will together invest about $4 billion of the total and begin construction next year.
Saudi Arabia is looking to transform about 4 million barrels of crude a day into chemicals.
"We aim to expand the value chain by producing advanced chemicals more efficiently than ever before, accelerating industrial progress in the kingdom,” Aramco’s Chief Executive Officer Amin Nasser said in the statement.
Aramco also last week reached an initial agreement with China’s Sinopec to build a similar facility at a joint refinery on the western Red Sea coast. The companies run a 400,000-barrel-a-day refinery at Yanbu, similar in size as the joint-venture plant with Total, on the opposite coast.
