Saudi Aramco, SABIC to develop crude oil to chemicals complex
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, which governs the execution of the front-end engineering design (FEED) before a final investment decision is made.
The COTC complex is expected to process 400,000 bpd of crude oil, which will produce approximately 9 MMt of chemicals and base oils annually and is expected to start operations in 2025.
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. A Saudi team developed innovative COTC configurations derived from best-in-class refining and chemical technologies.
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% impact on the Kingdom’s gross domestic product (GDP), with investments being shared equally by both companies.
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