Following a Memorandum of Understanding (MoU) in April, Saudi Aramco and Total have now signed a joint development agreement for the front end engineering and design (FEED) of their giant proposed petrochemical complex in Jubail, Saudi Arabia.

The complex will be built next to Aramco and Total’s joint venture Satorp refinery in order to fully exploit operational synergies. It will comprise a mixed feed cracker – the first in the Arabian Gulf to be integrated with a refinery – with a capacity of 1.5 million t/y of ethylene and related high-value-added petrochemical units.

About $5 billion will be invested in the complex, which is scheduled to start up in 2024. Further investment of $4 billion is anticipated from third-parties building downstream petrochemical and specialty chemical plants.

“The petrochemicals sector has been undergoing significant growth globally and is one of the future growth engines. Thus, SATORP’s second-phase expansion represents a significant value addition in Saudi Aramco’s downstream strategy to maximize the full value of our vast resources portfolio and position the Kingdom as a chemicals manufacturing and exports hub, supporting economic growth and diversification as part of Vision 2030,” commented Amin Nasser, CEO of Saudi Aramco.

The Satorp joint venture was established in June 2008 to build a refining and petrochemical complex in Jubail II. Total said the refinery, which produces 440,000 barrels per day of crude oil, is regarded as one of the most efficient in the world.

In separate news, Total has signed an agreement with Sonatrach to form a joint venture for their propane dehydrogenation/PP project in Arzew, Algeria. The jv, to be known as Sonatrach Total Enterprise Polymeres (STEP), will be owned 51% by Sonatrach and 49% by Total. The partners plan to start the FEED phase in November.