Italian engineering group Maire Tecnimont has won two contracts worth $2 billion related to petrochemical expansion at the Saudi Aramco Total Refining and Petrochemical (Satorp) refinery in the city of Jubail in the kingdom’s Eastern Province.
The Satorp refinery is a joint venture between Saudi Aramco, the world’s largest oil-exporting company, and France’s TotalEnergies.
The two engineering, procurement and construction turnkey contracts will bring Maire's year-to-date order intake to more than €2.6 billion ($2.83 billion), the Milan-based company said on Saturday.
This also includes a €200 million contract for a fertiliser plant in Egypt.
The contracts in Saudi Arabia will have a duration of four years.
“These awards will provide a significant addition to our already large €8 billion backlog, increasing revenues visibility in the short and medium term,” Alessandro Bernini, Maire Group’s chief executive, said.
Saudi Arabia, the world's biggest oil-exporting country, continues to ramp up its energy infrastructure by attracting investments and forging agreements with global players.
The existing energy climate also provides an opportunity: based on current policies and market trends, crude demand will rise by 6 per cent between 2022 and 2028 to reach 105.7 million barrels per day, the International Energy Agency said last week.
This is projected to be supported by strong demand from the petrochemical and aviation sectors, the Paris-based agency said in its medium-term oil market report.
The global petrochemicals market is projected to surpass $1 trillion by 2030, from an estimated $584.5 billion in 2022, expanding at a compound annual growth rate of 7 per cent from 2023, according to Grand View Research.
Maire's latest announcement comes after Saudi Aramco and TotalEnergies awarded contracts to build the $11 billion Amiral petrochemicals complex in Jubail last week.
Integrated with the existing Satorp refinery in Jubail, the new petrochemical complex will house the largest mixed-load steam cracker in the GCC, with a capacity to produce 1.65 million tonnes of ethylene and other industrial gases annually.
Saudi Aramco reports record profit for 2022
Maire Tecnimont was among seven companies awarded EPC contracts for the main processing units and associated utilities at the Amiral complex.
Maire Group’s subsidiaries Tecnimont and Tecnimont Arabia will execute the two contracts related to the petrochemical expansion in Jubail.
The contracts will “consolidate Maire’s strategic positioning in the Middle East region and its capabilities to execute the conversion of refineries towards higher value chemicals”, the company said.
The scope of work at the Satorp complex entails complete engineering services, equipment and material supply, construction activities, pre-commissioning and commissioning, according to Maire.
The contracts relate to the execution of two packages at the refinery complex, namely the derivatives units package and the high-density polyethylene and logistic area package, which includes two polyethylene units and the relevant product logistic facilities, the company said.
The petrochemical facility will enable the conversion of internally produced refinery off-gases and naphtha, as well as ethane and natural gas, into higher value chemicals, it added.
The contracts will boost the Italian oil services group’s revenues for 2023 and beyond, it said.
