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Thu 22 Nov 2012, 07:21 GMT

Jazan Refinery contracts signed


Ceremony held to sign the engineering, construction and procurement contracts of the Jazan Refinery and Terminal.

Saudi Aramco has held a ceremony to sign the engineering, construction and procurement contracts of the Jazan Refinery and Terminal.

Contracts were signed with Hanwha Engineering & Construction, JGC Corporation, Hyundai Saudi Arabia, SK Engineering & Construction, Petrofac Saudi Arabia, Hitachi Plant Technologies and Tecnicas Reunidas to build various parts of the plant. Local company Al-’Ali Al-Ajmi Group has also signed a deal to prepare the site.

Located in the coastal part of the City of Bish, at the heart of Jazan Economic City, the Jazan Refinery will be built on an area of approximately 12 square kilometers. Upon completion of the refinery and terminal project in late 2016, the refinery will be able to process 400,000 barrels per day of Arabian Heavy and Arabian Medium crudes to produce gasoline, ultra-low sulphur diesel, benzene and paraxylene.

Khalid A. Al-Falih, president and CEO of Saudi Aramco, said: "The Jazan Refinery and Terminal Project will provide more than 1,000 direct jobs in addition to 4,000 indirect jobs. A multiple-pier marine terminal will be constructed as part of the refinery to supply it with crude oil and support the refined products export operations."

HRH Prince Faysal ibn Turki ibn Abdulaziz, Consultant at the Ministry of Petroleum and Mineral Resources, described the project to build the Jazan refinery, terminal and high efficiency power plant as a supporting pillar for industrial activities in the Jazan Area. "This project will act like a new base for conversion and supporting industries in the Kingdom and an additional source of employment opportunities for the area's inhabitants and will provide the city with a competitive edge through the provision of ample crude oil and energy supplies in this area," he said.

The project includes drydocks and ship building facilities at an estimated cost of SAR 8 billion (USD 2.13 billion). The project will generate approximately 2,000 direct jobs.

Saudi Aramco said it is also pursuing the construction of two 400,000 barrels per day refineries in the bunker ports of Yanbu and Jubail, both designed to process heavier crudes for export to external markets.

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