DHAHRAN, SAUDI ARABIA: Saudi Aramco’s two major projects Sadara Chemical Company (Sadara) and the Saudi Aramco Total Refining and Petrochemical Co (SATORP) was inaugurated by The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud.
These two projects come among the largest facilities in the refining and petrochemicals industries that support the objectives of Saudi Vision 2030. The Vision aims to create new industries that will help provide new job opportunities for Saudis, as well as attract foreign investment to the Kingdom.
Sadara Project
The Sadara project is the largest integrated chemicals complex in the world to be built in one phase. It is a joint venture (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 tonnes of various plastics and chemicals product annually.
The foreign direct investment used to establish Sadara is the largest in the Saudi petrochemicals industry. The company is the cornerstone of Saudi Aramco’s strategy to achieve integration in processing and refining to produce high-value chemicals and benefit all stakeholders.
The corporation with Dow Chemical allows Saudi Aramco to release its full potential in chemicals and to benefit from innovative technologies in producing high-value chemicals never before produced in the Kingdom.
The refining, processing and marketing projects will help Saudi Aramco achieve the maximum value possible from hydrocarbons in the Kingdom and establish new industries to create more jobs for Saudis. Through 14 newly introduced technologies, the project ushers the Kingdom into a new age of economic diversification, new products and job opportunities.
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 barrels per day of naphtha as a feedstock to produce three million tonnes 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.
SATORP Project
The 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 tonnes of paraxylene, benzene, sulphur and pure petroleum coke that fuels cement plants and electric power stations.
This JV will create approximately 5,700 new direct and indirect jobs and will serve Saudi Aramco’s vision to become among the world’s top three refiners. The venture showcases the positive impact of foreign direct investments in the Saudi economy. The construction of the project involved 45,000 workers with 80 percent of the work performed by local subcontractors with a Saudization rate of 65 percent.
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,” said His Excellency Khalid Al Falih, chairman of Saudi Aramco.
“The Kingdom will benefit from the commercial activities of Sadara and SATORP. These will provide the additional boost for Saudi Aramco to become a fully integrated energy and chemicals leader which promises well for its larger portfolio diversification agenda, and will have a great impact on the economy, directly and indirectly,” added Amin Nasser, President and CEO of Saudi Aramco.
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