Chemanol secures 20-year deal for supply of methanol to Satorp

Chemanol secures 20-year deal for supply of methanol to Satorp

Saudi Arabia’s Methanol Chemicals Co (Chemanol) has entered into a 20-year deal to supply methanol to Saudi Aramco Total Refining and Petrochemical Co (Satorp)’s US$11 billion Amiral petrochemical project in Jubail.

Under the agreement, Chemanol will supply 100,000 tonnes/year of methanol to Satorp when the complex starts up in three years’ time, in 2027.

It added that “the financial impact of this agreement is currently indeterminable due to the changes in market conditions and product prices at the time of starting to supply the methanol”.

Satorp is a joint venture between energy giant Saudi Aramco and French TotalEnergies. Aramco owns 62.5% of Satorp, while TotalEnergies holds the remaining stake of 37.5%.

The complex is expected to have a mixed-feed cracker and utilities, with a nameplate capacity of 1.65 million tonnes/year of ethylene and related industrial gases.

Engineering, procurement, and construction (EPC) contracts for the Amiral project were awarded in June 2023 to South Korea’s Hyundai Engineering & Construction.

Amiral will enable Satorp to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher value chemicals.