You are here: Home » International » News » Companies
Business Standard

Aramco, Total SA to build a $5-bn petrochemical complex in Saudi Arabia

Steam cracker will feed $4 billion specialty-chemical plants

Francois De Beaupuy & Caroline Connan | Bloomberg 

Saudi Aramco
Logo of Saudi Aramco. (Photo: Reuters)

and French oil major plan to build a $5 billion near their refinery in Jubail to tap growing demand in the Middle East and Asia.

The signed a preliminary deal for the construction of a 1.5 million tonnes a year steam cracker and petrochemicals units, Saudi Arabian Oil Co. and Total said in the joint statement Tuesday. The cracker will feed other petrochemical and specialty chemicals plants, to be built by other for $4 billion.

is a growing market” and “it’s also a place from where you can reach other markets in the Middle East and Asia,” Total Chief Executive Officer Patrick Pouyanne said. “Some French have plans to join us,” he said, citing water group Suez and tire-maker Michelin.

ALSO READ: India prepared to grant 50% stake to Aramco in west coast refinery: Sources

The project, to be built by the companies’ venture, is likely to create 8,000 jobs. It is part of Aramco’s plan to diversify from its core business of producing to expanding into value-added products as it plans the world’s biggest initial public offering. Aramco and Total will also benefit from some of the cheapest feedstock for the chemical plant.

Aramco last week also signed an agreement with companies TechnipFMC Plc and Honeywell Inc. to explore expanding chemical production along the

Besides the petrochemicals project, more than the other dozen agreements were signed at the France-Saudi business forum Tuesday. These involved deals for companies such as Suez, Veolia Environnement SA, Saur, Schneider Electric SE, Orange SA, and their Saudi counterparts Aramco, Saudi Basic Industries Corp., PetroRabigh, and

First Published: Wed, April 11 2018. 09:56 IST