National oil firm Saudi Aramco and Saudi Basic Industries Corp. (SABIC) have signed a memorandum of understanding (MoU) to develop a fully integrated crude oil to chemicals (COTC) complex in the Kingdom, the two said in a joint statement on Sunday.
The MoU relates to the execution of front-end engineering design (FEED), before a final investment decision is made.
The complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of chemicals and base oils annually. Operations are likely to start in 2025.
“COTC will also help expand our downstream portfolio, reducing our focus on the transportation sector and securing new and promising commercial opportunities,” Aramco president and CEO Amin H. Nasser said in the statement.
The firms plan to base the construction of the COTC complex on an “innovative configuration that achieves crude oil to chemicals conversion that is unprecedented in the industry.”
The complex is expected to create an around 30,000 direct and indirect jobs, the statement said. By 2030, the complex is likely to have 1.5 percent impact on the Saudi Arabia’s gross domestic product (GDP), with investments being shared equally by Aramco and SABIC.
According to earlier reports, the oil-to-chemicals complex could cost as much as $30 billion. The project will process petrochemicals directly from crude oil without first refining the oil into another product.
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