Riyadh – Mubasher: State-owned Saudi Aramco and French oil major Total have officially signed an agreement to start the front-end engineering and design (FEED) operations for a large petrochemical complex in Jubail Industrial City.

The joint venture (JV) will comprise a mixed-feed cracker, that includes 50% ethane and refinery off-gases, with a capacity of 1.5 million tonnes per year, the two firms said in a statement on Monday.

The JV’s total investments are expected to reach $9 billion, while official operation is forecast to start by 2024 and provide 8,000 direct and indirect job opportunities.

“The project will also provide feedstock for other petrochemical and specialty chemical plants located in the Jubail industrial area and beyond, representing an additional $4 billion investment,” the statement added.

The complex will be built near Aramco Total Refining and Petrochemical Company’s (SATORP) refinery. Aramco will have and operate 62.5% of the JV, while the remaining 37.5% will be owned and operated by Total.

The deal was signed in the presence of Aramco CEO Amin Nasser and Total CEO Patrick Pouyanné.

Earlier on Monday, the two companies said they would be signing the deal to launch a mega petrochemical complex soon.