Saudi Arabia signs Amiral development deal to localize petchem value chains

The Ministry of Investment signed an investment agreement with SATORP to develop the Amiral project, a joint venture between Saudi Aramco and Total.

The project aims to support the localization of value chains in the petrochemicals sector, boosting the growth of downstream industries in the Kingdom and increasing the added value of natural resources. It also seeks to contribute to the development of non-oil exports and enhance local content.

The project will focus on developing and producing petrochemicals that enable several industrial sectors, most notably automotive and construction. It also aims to allocate around 50% of its output as feedstock for advanced petrochemicals used to support domestic industrial supply chains. The remaining output will be exported to global markets, strengthening the trade balance and supporting income diversification.

The project is part of the integrated energy sector strategy, which targets the development of projects based on liquid feedstock, in line with several national strategies, including the National Industrial Strategy and the Localization Strategy. It will also create direct job opportunities for Saudi nationals and enhance local content.

According to Argaam data, Saudi Aramco and TotalEnergies decided in December 2022 to establish a petrochemical complex. The Amiral complex will be owned and operated and integrated with the SATORP refinery in Jubail on the Kingdom’s eastern coast. Engineering, procurement, and construction (EPC) contracts worth $11 billion were awarded in mid-2023, with commercial operations targeted to begin in 2027.