Concerns over fuel allocations for the $5bn King Abdullah Economic City (KAEC) Aluminium Smelter in Saudi Arabia has forced the project to lower the annual production capacity of its first phase, a source close to the project has told MEED.

The source, speaking on condition of anonymity, said that the facility’s first phase would now be lower than 700,000 tonnes a year (t/y) and the whole project will now be completed in three phases instead of two.

“It will be lower [than 700,000 t/y], but how lower depends on the fuel allocation the project receives from the Saudi Oil Ministry,” he said. “[The project] still plans to have a total capacity of 1.5 million t/y, but it will be conducted in three phases, each with a different capacity depending on the fuel allocations.”

The project will be conducting a banking feasibility study in 2011, with engineering, procurement and construction (EPC) contracts awarded in 2012 and final completion date set at late 2015 or early 2016, the source added.

The smelter project is a joint venture between Emal and Emaar, The Economic City. (MEED 30:01:08)

Emirates Aluminium (Emal) is a joint venture between Abu Dhabi sovereign wealth fund, Mubadala Development Company and Dubai Aluminium Company (Dubal).