Riyadh unveils export refinery
Riyadh is planning a major expansion of the kingdom's refining infrastructure with the construction of a new worldscale export refinery on the Red Sea, and the integration of petrochemicals production units at two grassroots export refineries proposed at Jubail 2 and Yanbu industrial cities.
The Petroleum & Mineral Resources Ministry will in January invite companies to express interest in the licence to develop a new export refinery at Jizan in the southwest. The semi/full conversion grassroots refinery will have a nameplate capacity of 250,000-400,000 barrels a day (b/d) and will take about four years to build. 'We will issue an RFP [request for proposals] in the second quarter, with bids due in the fourth quarter. An award will be made by the end of 2007,' said Yahya al-Zaid, a local independent consultant appointed to advise on the scheme by the ministry.
Speaking at the Saudi Energy Forum in Dammam on 20 November, Al-Zaid said the project would be a joint venture of the Saudi private sector and an international oil company. 'The facility will be configured to handle both heavy and sweet crude and there is a potential to integrate petrochemicals and power elements,' he said. 'Output from the refinery will primarily target the US and Europe and the remaining volumes will serve domestic demand.'
Various options are being considered for the supply of crude feedstock, including shipping from Yanbu. 'We are at an initial stage of project description and several loose ends will need to be tied up. However, the ministry is clear on its intention of a major involvement of the local private sector in the decision-making process,' Al-Zaid said.
Plans are also under development to add a paraxylene unit at the proposed 400,000 b/d Jubail-2 refinery in the Eastern Province. 'We are adding a delayed coker and a 650,000-t/y [tonne-a-year] unit to produce benzene, paraxylene, naphtha and petroleum coke,' said Jean-Jacques Mosconi, a senior vice-president of France's Total. The front-end engineering and design contract for the refinery is due to be completed by the end of 2007, with start-up planned in mid-2011. Total is partnering with Saudi Aramco to build the refinery.
A petrochemicals integration is also planned for the 400,000 b/d Yanbu facility, which will be built by the US' ConocoPhillips and Aramco. 'We are studying the final plant configuration and will take a decision soon,' said Nick Spencer, a general manager at ConocoPhillips. Total and ConocoPhillips will take a final investment decision on both projects in late 2007.
www.meed.com/oilandgas
Riyadh is planning a major expansion of the kingdom's refining infrastructure with the construction of a new worldscale export refinery on the Red Sea, and the integration of petrochemicals production units at two grassroots export refineries proposed at Jubail 2 and Yanbu industrial cities.
The Petroleum & Mineral Resources Ministry will in January invite companies to express interest in the licence to develop a new export refinery at Jizan in the southwest. The semi/full conversion grassroots refinery will have a nameplate capacity of 250,000-400,000 barrels a day (b/d) and will take about four years to build. 'We will issue an RFP [request for proposals] in the second quarter, with bids due in the fourth quarter. An award will be made by the end of 2007,' said Yahya al-Zaid, a local independent consultant appointed to advise on the scheme by the ministry. Speaking at the Saudi Energy Forum in Dammam on 20 November, Al-Zaid said the project would be a joint venture of the Saudi private sector and an international oil company. 'The facility will be configured to handle both heavy and sweet crude and there is a potential to integrate petrochemicals and power elements,' he said. 'Output from the refinery will primarily target the US and Europe and the remaining volumes will serve domestic demand.' Various options are being considered for the supply of crude feedstock, including shipping from Yanbu. 'We are at an initial stage of project description and several loose ends will need to be tied up. However, the ministry is clear on its intention of a major involvement of the local private sector in the decision-making process,' Al-Zaid said. Plans are also under development to add a paraxylene unit at the proposed 400,000 b/d Jubail-2 refinery in the Eastern Province. 'We are adding a delayed coker and a 650,000-t/y [tonne-a-year] unit to produce benzene, paraxylene, naphtha and petroleum coke,' said Jean-Jacques Mosconi, a senior vice-president of France's Total. The front-end engineering and design contract for the refinery is due to be completed by the end of 2007, with start-up planned in mid-2011. Total is partnering with Saudi Aramco to build the refinery. A petrochemicals integration is also planned for the 400,000 b/d Yanbu facility, which will be built by the US' ConocoPhillips and Aramco. 'We are studying the final plant configuration and will take a decision soon,' said Nick Spencer, a general manager at ConocoPhillips. Total and ConocoPhillips will take a final investment decision on both projects in late 2007. www.meed.com/oilandgasThis content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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