Saudi Aramco and Saudi Arabian Basic Industries Corp. (SABIC) have formalized a previously announced agreement to conduct a joint feasibility study for the development of a fully integrated crude oil-to-chemicals (COTC) complex in Saudi Arabia (OGJ Online, June 28, 2016).
The companies have signed a memorandum of understanding to execute front-end engineering design for the proposed COTC complex, which they expect will process 400,000 b/d of crude oil to produce about 9 million tonnes/year of chemicals and base oils, Aramco said.
The complex would use a COTC process derived from improved refining technology that mixes configurations with proved conversion technologies to create an integrated petrochemical complex capable of maximizing chemical yield, transforming and recycling byproducts, driving efficiencies of scale and resource optimization, and diversifying Saudi Arabia’s petrochemical feedstock mix, the companies said upon announcing the project in 2016.
The companies plan to reach a final investment decision on the complex upon completing FEED.
If approved, the COTC project—which would fulfill Saudi Vision 2030 goals for the downstream sector and will mark the first time the two largest economic entities in Saudi Arabia jointly enter into a strategic partnership—would create an estimated 30,000 direct and indirect jobs, Aramco said (OGJ Online, June 1, 2016).
Further details regarding Aramco and SABIC’s previously announced intention to establish a joint venture to advance the project were not disclosed.
Contact Robert Brelsford at [email protected].