Saudi Aramco, the national oil company of Saudi Arabia, and TotalEnergies of France have agreed to a substantial investment package totaling about $11 billion. The centerpiece of this deal is the development of a new petrochemical complex, a project highlighted in a formal statement issued by Saudi Aramco and posted on the company’s official site.
The press release explains that the planned complex will be integrated into the existing SATORP refinery, which is situated in the Al Jubail industrial zone in eastern Saudi Arabia. This integration aims to create a cohesive refining and petrochemical hub that leverages synergies across production lines, logistics, and regional supply chains.
Saudi Aramco describes the project as one of the most significant facilities for thermal cracking in a mixed-phase environment. The expected production capacity targets approximately 1.65 million tons of ethylene per year, a figure that underlines the project’s scale and its potential impact on regional petrochemical output and export capabilities.
In related industry news, Reuters reported a joint venture announced in March between Saudi Aramco and DHL Supply Chain. The venture focuses on procurement and logistics within Saudi Arabia with the prospect of expanding services to additional markets in the future, signaling a broader strategy to strengthen supply chain resilience and distribution efficiency across the region.
Earlier disclosures mention that Aramco is planning a substantial investment of about $7 billion for a new petrochemical facility in South Korea. This Korean project is part of a broader, multi-year investment plan, with the total portfolio earmarked for Korea reaching around $30 billion across various developments.
Across these moves, the overarching objective is to bolster Saudi Arabia’s position in the global petrochemical landscape while expanding downstream capabilities in line with national energy and industrial diversification goals. The collaboration with TotalEnergies combines Aramco’s refining scale with TotalEnergies’ downstream experience, potentially accelerating technology deployment, feedstock optimization, and regional energy integration. The initiatives are expected to influence regional jobs, supplier ecosystems, and equipment manufacturers that serve petrochemical production and logistics networks. Analysts suggest that the venture could also affect market dynamics for ethylene, propylene, and related polymers, with downstream value chains closely watching capacity expansions and feedstock sourcing. (Attribution: Reuters and company statements)