Saudi Aramco and Sabic have signed a memorandum of understanding (MoU) to develop a fully integrated crude oil-to-chemicals (COTC) complex in the Kingdom of Saudi Arabia. This governs the execution of the front-end engineering design (FEED) before a final investment decision is made.
The COTC complex is likely to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tonnes of chemicals and base oils annually. The complex is expected to start operations in 2025.
This announcement marks a historic alliance between the two largest Saudi global entities, in addition to solidifying the Kingdom’s position as a global leader in chemicals by substantially increasing production and further maximizing value across the entire hydrocarbons chain through integration. The COTC complex will be constructed based on an innovative configuration that achieves crude oil-to-chemicals conversion that is unprecedented in the industry.
This MoU follows the heads of agreement (HoA) signed in June 2016 between the two companies, which governed the feasibility study for the development of a fully integrated petrochemicals complex in the Kingdom.
The complex is expected to create an estimated 30,000 direct and indirect jobs, further stimulating the Kingdom’s economic diversification. By 2030 the COTC complex is expected to have 1.5 percent impact on the Kingdom’s gross domestic product (GDP), with investments being shared equally by both companies.
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