Posting Date: 19/Dec/2020
Refinery and Petrochemicals facilities transform gas and liquid hydrocarbons to a wider range of refined and petrochemical products respectively. The feedstock used in a refinery is crude oil, while in case of petrochemical facilities the feedstocks used include LPG, naphtha and gasoil. These feedstocks are often from refinery sources. Globally, approximately half of ethylene production is based on liquid feedstocks, the large majority of which is derived from refinery streams.
The COTC complex is expected to process 400,000 barrels per day of crude oil, which will produce approximately 9 million tons of chemicals and base oils annually and is expected to start operations in 2025. The complex is expected to create an estimated 30,000 direct and indirect jobs, further stimulating the Kingdom’s economic diversification efforts. 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. Consistent with the Kingdom’s Vision 2030 economic transformation program, this project will support the creation of a world-leading downstream sector in Saudi Arabia, built on four key drivers: maximizing value from the Kingdom’s crude oil production via integration across the hydrocarbon chain; enabling the creation of conversion industries to produce semi-finished and finished goods to help diversify the economy; developing advanced technologies and innovation; and enabling sustainable development in alignment with the Kingdom’s National Transformation Program. The announcement strengthens the alliance between the two largest Saudi global entities and solidifies the Kingdom’s position as a global leader in chemicals by substantially increasing production and maximizing value across the entire hydrocarbons chain. Earlier this year, Saudi Aramco and SABIC awarded the Project Management and Front End Engineering to Wood and KBR. The Partners are working on finalizing the selection of Leading Edge Technologies to complement their technologies.