Aramco, ExxonMobil weigh new chemical complex for Samref refinery

Saudi Aramco and partner ExxonMobil Corp. subsidiary Mobil Yanbu Refining Co. Inc. are discussing the possibility of executing a major overhaul and expansion of 50-50 joint venture Saudi Aramco-Mobil Refinery Co. Ltd.’s (Samref) 400,000-b/d Samref refinery in Yanbu, Saudi Arabia.

As part of a venture framework agreement (VFA) signed on Dec. 8, the partners will evaluate potential capital investments to expand and diversify the refinery’s existing production slate, including the addition of a grassroots petrochemical complex at the site, Aramco said in a statement.

In addition to upgrading and diversifying Samref’s production to include lower-emission, high-quality distillates and high-performance chemicals, the project scope would involve works to improve the refinery’s energy efficiency and implement a sitewide integrated emissions reduction strategy, according to Aramco.

With the VFA now signed, the companies said they will begin the project’s preliminary front-end engineering and design (pre-FEED) study, which will focus on opportunities to maximize the site’s operational advantage and enhance its competitiveness while meeting Saudi Arabia’s growing demand for high-quality petrochemical products.

For Aramco, the proposed project—the design of which aims to increase the conversion of crude oil and other petroleum liquids into higher-value chemicals—further reinforces the company’s commitment to creating further value of its overall downstream business as well as its liquids-to-chemicals strategy, according to Mohammed Y. Al Qahtani, Aramco’s downstream president.

“[The proposed expansion and integration project] will also position Samref as a key driver in the growth of [Saudi Arabia’s] petrochemical sector,” Al Qahtani added.

Without disclosing a timeline as to when the partners expect to complete the pre-FEED study or reach final investment decision, Aramco confirmed existing plans for the potential project would remain subject to market conditions and necessary regulatory approvals.

Samref previously completed modifications and renovations at the Yanbu refinery in 2014-15 related to a two-phased clean-fuels project involving installation and revamps of major desulfurization units as part of the operator’s strategy to comply with Saudi Arabia’s 2013 mandatory specifications for gasoline and diesel with 10 ppm sulfur.