Saudi Arabia’s Chemanol Inks 20-Year Methanol Deal with Aramco and TotalEnergies Unit

Chemanol, a prominent Saudi-listed Methanol Chemicals Company, has recently clinched a significant 20-year agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture between Saudi Aramco and TotalEnergies. This milestone deal entails supplying 100,000 metric tonnes of methanol annually to support SATORP’s ambitious Amiral project. While the methanol supply is slated to commence by the end of 2027, the financial specifics of the agreement remain undisclosed due to fluctuating market conditions and product prices at the time of implementation.

In a statement, Chemanol emphasized the current inability to ascertain the financial impact of the agreement amidst market dynamics. The company assured stakeholders that any updates related to this aspect would be communicated in due course as developments unfold.

The Amiral project represents a major expansion initiative at the SATORP refinery in Saudi Arabia, amounting to an impressive $11 billion investment in petrochemical facilities. This sprawling complex is set to host one of the largest mixed-load steam crackers in the GCC (Gulf Cooperation Council), equipped with an annual production capacity of 1,650 kilotons of ethylene and various other industrial gases.

SATORP, a standout among global refineries, boasts a processing capacity of 460,000 barrels per day of Arabian Heavy Crude. It excels in producing petroleum and petrochemical products while upholding the highest standards of Health, Safety, and Environment. Established through a collaboration between Saudi Aramco and TotalEnergies, this state-of-the-art refinery is situated in Jubail Industrial City, Eastern Province, Saudi Arabia. The founding shareholders are currently engaged in a strategic expansion project to integrate a new petrochemical complex with SATORP's existing operations, aiming for optimal operational synergy. The partnership between Saudi Aramco and TotalEnergies represents a global alliance renowned for its profound expertise in refining and petrochemicals, robust financial capabilities, and strategic dedication to the industry. These attributes are evident in both companies' track records of successful execution and operation of refining projects.

Amiral project, this new project aligns with TotalEnergies' strategy to foster sustainable development of petrochemicals using advantageous feedstocks, while leveraging synergies within its major integrated platforms in expanding markets. Amiral is a large-scale petrochemical complex integrated with the SATORP refinery in Jubail, located on Saudi Arabia's eastern coast. It is being developed and will be managed by the SATORP joint venture, jointly owned by Saudi Aramco (62.5%) and TotalEnergies (37.5%). This ambitious project entails an investment totaling $11 billion. Construction is slated to commence in 2023, with commercial operations targeted for 2027. The project is focused on utilizing feedstock sourced directly from the SATORP refinery, including its off-gases and naphtha, alongside ethane and light naphtha supplied by Saudi Aramco.