News Post
King Salman inaugurates two Saudi Aramco JV projects
The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud inaugurated the Sadara Chemical Company and the Saudi Aramco Total Refining and Petrochemical Co. (SATORP). The two projects are among the largest facilities in the refining and petrochemicals industries that support the objectives of Saudi Vision 2030.
Photo Courtesy of Saudi Aramco.
Sadara and SATORP are the result of partnerships between Saudi Aramco and two global companies—The Dow Chemical Company and Total—which are leaders in their respective areas of business.
His Excellency Khalid Al Falih, Minister of Energy, Industry and Mineral Resources and Chairman of Saudi Aramco said, “Sadara and Satorp represents a bold undertaking for Saudi Aramco and its respective partners, Dow Chemical and Total. It is a major driver in achieving our goals of greater integration and value addition. Sadara and Satorp represents the concrete realization of our distinct yet complementary corporate visions -- it is one way in which Saudi Aramco is helping to deliver on its abiding commitment to the Kingdom.”
The Sadara project is the largest integrated chemicals complex in the world to be built in one phase. It is a JV between Saudi Aramco and The Dow Chemical Company in Jubail Industrial City in the Eastern Province of Saudi Arabia. The first phase commenced operations in 2015, and the remaining operating units are scheduled for completion by the end of 2016. The production capacity is more than three million tons of various plastics and chemicals product annually.
Sadara is the first chemicals complex in the GCC region that uses naphtha as feedstock. The complex has a unit to crack naphtha that can process 85 million standard square feet of ethane and 53,000 bpd of naphtha as a feedstock to produce three million tons of high value and high performance plastics annually.
Once fully operational at maximum capacity, the project will employ more than 4,000 people. In addition, the PlasChem Park, a world-class industrial park for chemical and conversion industries created by a collaboration between Sadara and the Royal Commission for Jubail and Yanbu, will create 15,000 direct and indirect job opportunities for Saudis in Jubail alone.
The Saudi Aramco Total Refining and Petrochemical Co. (SATORP), a JV between Saudi Aramco and Total in Jubail, will support Saudi Aramco’s efforts to expand the value chain and achieve maximum value from the Kingdom’s resources. It can process 400,000 barrels of heavy Arabian crude daily into low-sulfur gasoline, diesel and jets fuel that comply with the standards in the United States, Europe and Japan. It also produces more than one million tons of paraxylene, benzene, sulfur and pure petroleum coke that fuels cement plants and electric power stations.
This JV will create approximately 5,700 new direct and indirect jobs. The construction of the project involved 45,000 workers with 80% of the work performed by local subcontractors with a Saudization rate of 65%.
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