Saudi Aramco signs a MoU with Saudi Basic Industries Corporation (SABIC) to built a fully integrated petrochemicals complex in Saudi Arabia. The crude oil to chemicals (COTC) complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of petrochemicals and base oils annually. It is expected that complex will start operations by 2025.
This MoU follows the Heads of Agreement (HoA) signed in June 2016 between the two companies, which governed the feasibility study for the development of a fully integrated petrochemicals complex in Saudi Arabia. A Saudi team developed innovative COTC configurations derived from best-in-class refining and chemical technologies.
With the increasing production and maximising value across the entire hydrocarbons chain, it will solidify the country's position as a global leader in petrochemicals.
Saudi Aramco president and CEO Amin H Nasser said this project converges the commercial and strategic interests of both Saudi Aramco and SABIC, while reinforcing Saudi Aramcoâ€™s efforts to optimise the investment of their petroleum resources. COTC will also help expand their downstream portfolio, reducing their focus on the transportation sector and securing new and promising commercial opportunities.
This venture will contribute to the realization of one of the major aspirations of Saudi Vision 2030, namely achieving economic prosperity by boosting our investment capacity, diversifying the economy and creating jobs for Saudi nationals. It will help strengthen their economic growth and attract world-class quality investments thanks to their unique and strategic geographic location, said SABIC vice chairman and CEO Yousef Abdullah Al-Benyan.
The complex is expected to create an estimated 30,000 direct and indirect jobs, further stimulating the country's economic diversification. By 2030 the COTC complex is expected to have 1.5 per cent impact on its gross domestic product, with investments being shared equally by both companies.
Consistent with the country's Vision 2030 economic transformation programme, this project will support the creation of a world-leading downstream sector in Saudi Arabia, built on four key drivers: maximising value from Saudi Arabia's crude oil production via integration across the hydrocarbon chain; enabling the creation of conversion industries to produce semi-finished and finished goods to help diversify the economy; developing advanced technologies and innovation; and enabling sustainable development in alignment with the country's National Transformation Program.
It is the first time the two largest economic entities in Saudi Arabia SABIC and Saudi Aramco have jointly enter into a strategic partnership to achieve a pioneering and innovative new technology.
The project will not only help achieve the respective growth ambitions of Sabic and Saudi Aramco but alos establishe the country as one of the pioneers in the petrochemicals industry.
This project, on completion will not only be the largest crude oil to chemicals complex in the world, but it will also set a new competitive threshold thanks to the project's mass scale and the benefits derived from the joint collaboration.
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