The French energy group announced that Saudi Arabian Oil Company (Aramco) and TotalEnergies will join forces to build a new petrochemical complex in Saudi Arabia on Thursday.
The statement said that the project involves an investment of around $11 billion, of which $4 billion will be equity financed by Aramco (62.5%) and TotalEnergies (37.5%).
The investment decision is subject to closing conditions and approvals, with construction expected to begin in the first quarter of 2023 and commercial operation expected in 2027
The planned Admiral Complex, integrated with Saudi Arabia’s existing Total Refining and Petrochemical refinery located in Jubail on the east coast of Saudi Arabia, will be owned and operated by Aramco and TotalEnergies.
The entire complex, including adjacent facilities, is expected to create 7,000 jobs locally.
The petrochemical facility will allow SATORP to convert its refinery off gas and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher-value chemicals.
The complex will eventually supply raw materials to other petrochemical and speciality chemical plants in the Jubail Industrial Zone, requiring an additional investment estimated at $4 billion.