Total Signs $5 Billion To Build Giant Petrochemical Project
Saudi Aramco and France’s Total have signed a memorandum of understanding to build a “macro petrochemical complex” in Jubail, Saudi Arabia.
Total announced on April 10 that it will integrate downstream Saudi Aramco and France’s total joint venture refining and petrochemical company (SATORP).
Saudi Aramco and Total own 62.5% and 37.5% of SATORP respectively.
The $5 billion (£4 billion) investment project will include a "world-scale" mixed feedstock steam cracker with an annual output of up to 1.5 million tons of ethylene and related high value-added petrochemicals.
The front-end engineering and design (FEED) work is expected to begin in the third quarter of 2018.
The cracker will supply raw materials for other petrochemical and specialty chemical plants that represent a total investment of 4 billion U.S. dollars (3.2 billion euros) from third-party investors.
The project will invest a total of 9 billion U.S. dollars (7.2 billion euros) for the production of more than 2.7 million tons of high-value chemicals.
Patrick Pouyanné, Total’s Chairman and Chief Executive Officer, stated that the project will use low-cost raw materials to supply the “rapidly growing Asian polymer market”.