Thursday, April 26, 2018

Total, Aramco Ink Deal for Jubail Petrochemical Complex

Posted by April 10, 2018

File Image (CREDIT: AdobeStock © MELCAL)

French oil and gas major Total on Tuesday signed a $5 billion deal with Saudi Aramco to build a giant petrochemical complex at their 440,000 barrels-per-day Jubail Satorp refinery.
 
Saudi Aramco holds a 62.5 percent stake in the refinery, while Total holds the other 37.5 percent. The memorandum of understanding (MoU) was signed on the sidelines of a visit by Saudi Crown Prince Mohammed bin Salman in Paris.
 
"The project will represent an investment of around $5 billion. The two partners are planning to start the front-end engineering and design in the third quarter of 2018," Total said in a statement.
 
Total added that 8,000 jobs would be created by the deal.
 
The complex will comprise a mixed-feed steam cracker with a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units, the statement said.
 
The cracker will feed other petrochemical and specialty chemical plants representing an overall amount of $4 billion investment by third party investors, it said, taking the total investment to $9 billion.
 

"This project illustrates our strategy of maximizing the integration of our large refining and petrochemical platforms and of expanding our petrochemical operations from low-cost feedstock, to take advantage of the fast growing Asian polymer market," said Total's chief executive Patrick Pouyanne.

 

Reporting by Bate Felix  

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