Saudi Aramco and French oil major Total SA plan to build a $5 billion petrochemical complex near their refinery in Jubail to tap growing demand in the Middle East and Asia.
The companies signed a preliminary deal for the construction of a 1.5 million tons a year steam cracker and petrochemicals units.
The cracker will feed other petrochemical and specialty chemicals plants, to be built by other companies for $4 billion.
Aramco’s plan to diversify from its core business of producing crude oil to expanding into value-added products as it plans the world’s biggest initial public offering. Aramco and Total will also benefit from some of the cheapest feedstock for the chemical plant.
