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Saudi Aramco, Total launch engineering studies for $5B petrochemical complex

State-owned oil giant Saudi Arabian Oil Co., or Saudi Aramco, and French oil major TOTAL SA signed an agreement Oct. 8 for the front-end engineering and design of the previously announced $5 billion petrochemical complex in Jubail, Saudi Arabia.

The complex, which will be next to the Saudi Aramco Total Refining and Petrochemical Co. refinery, will be composed of a mixed-feed cracker that has a capacity of 1.5 million tons per year of ethylene and related high-added-value petrochemical units. Startup is scheduled in 2024.

The overall investment for the complex is approximately $9 billion, which includes $4 billion to be invested by third parties that will feed other petrochemical and specialty chemical plants.

Total Chairman and CEO Patrick Pouyanné said the complex "fits with our strategy to expand in petrochemicals by maximizing the synergies within our major platforms, leveraging low-cost feedstocks and taking advantage of the fast growing Asian polymer market."