Prequalifiers sought for Rabigh captive power

15 October 2004
Potential developers have until 30 October to submit prequalifications for the captive independent water, steam and power project (IWSPP) on the proposed $4,300 million integrated refinery and petrochemicals complex at Rabigh (MEED 18:6:04).
Potential developers have until 30 October to submit prequalifications for the captive independent water, steam and power project (IWSPP) on the proposed $4,300 million integrated refinery and petrochemicals complex at Rabigh (MEED 18:6:04).

The request for qualification (RFQ) document describes the carving out of a 400-MW IWSPP and the timetable set for integration with the schedule for the construction of the new refinery. The fast-tracked process envisages proposals being submitted by year-end.

'Developers will be encouraged to look at how the Tihama IPPs were done - which were very effective,' says an industry source. 'But there are important questions over risk allocation. Building power stations on the basis of a straightforward offtake from existing Saudi Aramcofacilities is very different from building them for a refinery that is still on the drawing board.'

Saudi Aramco and Japan's Sumitomo Chemical Company are joint sponsors of the project, which will see a high olefins-yield fluid catalytic cracker (FCC) complex commissioned and integrated with an ethane-based cracker, producing about 1.3 million tonnes a year (t/y) of ethylene, 900,000 t/y of propylene and 80,000 barrels a day of gasoline and other refined products. Sumitomo-Mitsui Banking Corporation (SMBC) is acting as the financial adviser on the project.

The financing for the project is also being fast-tracked - financial close is slated for the second half of 2005 - and is likely to include a substantial tranche from the Japan Bank for International Co-operation (JBIC).

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