Jubail’s $500 Million Water Pact Redefines Industrial Sustainability

A $500 million water reuse project in Jubail marks a major shift toward industrial resilience and sustainability

16 Dec 2025

A long-term water reuse agreement in Saudi Arabia’s Jubail Industrial City is reshaping how large energy and petrochemical sites manage one of their most constrained inputs.

Saudi Aramco Total Refining and Petrochemical Company (SATORP) has signed a partnership with Veolia, Marafiq and Lamar to build and operate one of the region’s largest industrial water recycling facilities. Announced in September, the deal includes near-term construction followed by a 30-year operations and maintenance contract starting in 2028.

Once operational, the plant is expected to treat and reuse about 8.8mn cubic metres of industrial wastewater a year. For Jubail, one of the world’s largest industrial hubs, the volume represents a significant reduction in freshwater demand and wastewater discharge.

The project reflects broader pressures facing energy and chemicals producers across the Gulf. Water scarcity, tighter environmental standards and rising operating costs are forcing operators to reassess how water is sourced and managed. Wastewater, long treated as a compliance issue, is increasingly viewed as a strategic resource that can support production stability.

Veolia will provide water treatment technology and long-term operational expertise. Marafiq, the utility provider for Jubail, will integrate the facility into the city’s wider utilities system, while Lamar joins as a local partner aligned with national infrastructure priorities.

For SATORP, one of the kingdom’s most advanced refining and petrochemical complexes, the agreement secures a more reliable water supply while supporting regulatory compliance. The project’s reported value of about $500mn underlines the growing importance of water infrastructure in industrial investment decisions.

Analysts say similar partnerships are becoming more common as integrated energy and chemical sites seek to meet national sustainability targets without eroding competitiveness. Combining technology, financing and long-term operations in a single structure is seen as reducing risk over multi-decade horizons.

Operational challenges remain, including managing variable wastewater quality and maintaining performance over the life of the contract. Even so, the scale and duration of the Jubail agreement suggest rising confidence in water reuse as core industrial infrastructure, with a model likely to be adopted elsewhere in the region.