$11 billion.. The cost of expanding a petrochemical facility in Saudi Arabia
The award of engineering, procurement and construction contracts for major processing units and associated facilities marks the start of construction work on the combined petrochemical expansion, following a final investment decision in December 2022.
Shrouq
Saudi Arabia has awarded Aramco and Total Energy the engineering, procurement and construction contracts for the $11 billion Admiral Complex, a future expansion of a global petrochemical facility at the kingdom's SATORP refinery.
The signing ceremony, which was held in Dhahran, was attended by Amin Nasser, President and CEO of Aramco, and Patrick Pouyanne, Chairman and CEO of Total Energy. Won Hee-ryong, Minister of Land, Infrastructure and Transportation of South Korea; Government officials from Saudi Arabia, France and South Korea. Executives from Aramco, Total Energy and EPC companies were also present.
Engineering and procurement contracts
The award of engineering, procurement and construction contracts for major processing units and associated facilities marks the start of construction work on the combined petrochemical expansion, following a final investment decision in December 2022.
The goal of the new project
The new complex, integrated with the existing SATORP refinery in Jubail, aims to accommodate the largest mixed-load steam cracker in the Gulf, with a production capacity of 1,650 kilotons per annum of ethylene and other industrial gases.
Additional investments
This expansion is expected to attract more than $4 billion in additional investment in a variety of industrial sectors, including carbon fiber, lubricants, drilling fluids, detergents, food additives, auto parts and tires.
7000 job opportunities
It is also likely to create around 7,000 direct and indirect local jobs.
The engineering, procurement and construction contracts were awarded to Hyundai Engineering & Construction Co., Ltd. and Meyer Technimont Sinopec Engineering (Group) Saudi Arabia Ltd. And the Gulf Consolidated Contractors Company. And Muhammad Ali Al-Suwailem Trading and Contracting Company. Mufreh Marzouq Al-Harbi and Partners Co. Ltd. And Mubarak Mohammed Al Saloumi and Partners Contracting.
Strengthening the partnership between Total Energy and Aramco
Nasser said: “Today we take a big step forward in strengthening the partnership between Total Energy and Aramco, as the SATORP expansion project is the latest in a long history of cooperation between the two companies for nearly five decades.
As part of Aramco's growth strategy, the project is expected to contribute to value addition opportunities in the Kingdom's downstream ecosystem.
The Ministry of Energy and the Ministry of Investment are providing tremendous support through a partner program to make this project multifaceted. It is a multi-billion dollar project."
Pouyan said, “This milestone opens a new page in our shared history with Aramco, with which we are delighted to be engaged again.
“This expansion project reinforces the exemplary relationship that our company has enjoyed over several decades in the Kingdom of Saudi Arabia.
We would like to thank the Ministry of Energy in the Kingdom of Saudi Arabia for its support throughout the development of this world-class project.”
