In-Kingdom downstream

We are making significant achievements toward our goal of expanding our refining and chemicals capabilities within the Kingdom, helping to diversify the Kingdom’s economy, providing high-quality job opportunities for Saudis, and reinforcing our commitment to generate maximum value from the Kingdom’s hydrocarbon resources.

Through a calculated mix of wholly owned facilities and joint ventures, we produce a slate of refined products and high-value petrochemicals for domestic and international consumers and industries, helping to enable future growth and prosperity. 

Sadara

The Sadara Chemical Company, the world’s largest chemicals complex built in a single phase, ushers in a new era of economic diversification and growth for the Kingdom, bringing with it new products, new jobs, and new knowledge.

Located in Jubail Industrial City on the Arabian Gulf coast, Sadara will be the first chemicals complex in the Gulf Cooperation Council (GCC) countries to crack naphtha, which will support the manufacturing of diverse products not previously produced in the Kingdom. The complex includes a mixed feed cracking unit capable of processing 85 million standard cubic feet per day (scfd) of ethane and 53,000 barrels per day (bpd) of naphtha as feedstock to produce 3 million tons of performance plastics and high-value chemicals per year.

On track for full production by early 2017, Sadara is a key element of our intent to become a leading global chemicals producer. 

Sadara will generate job opportunities for thousands of Saudis and create thousands more indirect jobs.

PlasChem

Adjacent to Sadara is the PlasChem value park where manufacturers will transform the chemical streams from Sadara into advanced products for consumers in emerging markets, create new value chains that lift the Kingdom’s chemicals industry beyond basic commodity chemicals and foster the growth of new downstream businesses.

These new businesses have the potential to create thousands of direct and indirect jobs for Saudis. The Ministry of Petroleum and Mineral Resources has approved 24 differentiated projects for implementation in the PlasChem Park. 

SATORP

The Saudi Aramco Total Refining and Petrochemicals Company (SATORP) in Jubail, our joint venture with France’s Total, achieved one full year of operations with no lost-time injuries in 2015.

Roughly 80% of the refinery’s construction activities were executed by domestic subcontractors and the company has an overall Saudization rate of nearly 65%.

We recently began exploring the development of a world-class chemicals complex and associated value park to be integrated with SATORP and other existing sites in Jubail, further amplifying the economic benefits made possible by our downstream investments.  

YASREF

Our joint venture with China’s Sinopec, the Yanbu Aramco Sinopec Refining Company (YASREF), based in Yanbu’ on the Red Sea coast, started commercial operations in April 2015 and has generated nearly 1,200 direct jobs and 5,000 indirect jobs, with Saudization at the refinery reaching almost 74%.

YASREF also commenced exports of petroleum coke, or petcoke. Petcoke contains more energy with less ash and is a manifestation of our commitment to extract more value from crude oil while also meeting customers’ needs for reliable sources of fuel at competitive prices. 

Jazan Refinery and Terminal

Construction of our wholly owned Jazan Refinery and Terminal in the Kingdom’s southwest continues. The 400,000 bpd refinery and terminal facilities are the industrial heart of the government’s greater Jazan Economic City project, and part of a broad plan to drive sustainable economic development in the region and create employment opportunities for Saudis. Over a 15-year period, more than 70,000 new jobs could be created as the industrial city attracts a range of medium and light industries and associated service companies.

The Jazan project includes the construction of the world’s largest integrated gasification combined cycle (IGCC) power plant, capable of utilizing the refinery’s vacuum residue stream to efficiently generate nearly 4,000 megawatts of electricity — enough to power the refinery and also supply electricity to the Jazan Economic City tenants.  

Commissioning of the Jazan Refinery and completion of the IGCC power plant are scheduled for 2018 and the terminal project is expected to be completed in April 2018.

Petro Rabigh

Located on the Red Sea coast is the Rabigh Refining and Petrochemical Company (Petro Rabigh), our integrated refining and petrochemical venture with Sumitomo Chemical of Japan. We are currently expanding the plant in a second phase that will increase the production capacity of the ethane cracker, add a new world-scale aromatics complex, and create 22 process plants.

The Phase II facilities will produce a variety of high value-added petrochemical products, supplying feedstock for a diverse array of industries. The project is on track for initial commissioning in mid-2016. 

We have also launched the Technical Learning Academy at Petro Rabigh to train young operators and equip the Saudi workforce with advanced skills.

Rabigh PlusTech Park

We have continued our collaboration with Sumitomo Chemical on marketing and construction activities for the Rabigh PlusTech Park, an industrial zone integrated with Petro Rabigh where manufacturers can establish factories to create products from the petrochemical feedstock produced by Petro Rabigh.

So far, 29 local and international companies from the plastics conversion industry have signed agreements to operate in the park. By the end of 2015, 11 conversion companies had started production with the remaining 18 firms in the design or construction phase.

Out of the 29 companies, 21 are joint ventures between local owners and international partners, affirming Petro Rabigh and PlusTech Park as accelerators of the Kingdom’s economy and engines for domestic job creation. 

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