Aramco outlines major expansion projects

04 October 2006 07:54  [Source: ICIS news]

DUBAI (ICIS news)--Saudi Aramco has engaged in the largest expansion programme in its history, encompassing crude oil production, refining and petrochemicals production, the Saudi Arabian oil major said on Tuesday.

Aramco has approximately 150 active projects at the moment, ranging in cost from $2m to $10bn, including five mega projects, said Mohammad A Al-Juwair, general manager of area projects, in a statement.

He added that Aramco’s large-scale expansion was due to the recent rise in demand for energy.

He noted, however, that scarcity of skilled engineering and construction resources, longer delivery times for commodities, rising prices of goods, and keen competition for experienced engineering firms and construction contractors, are major challenges to the projects. 

The oil major's line-up of mega projects include the Hawiyah natural gas liquids (NGL) recovery plant (310,000 bbl/day of ethane and NGL capacity), the Khurais field development (1.2m bbl/day crude and 420m cubic feet/day gas), and the Manifa field development (900,000 bbl/day crude and 120m cubic feet/day gas).  

Aramco had made it known in the past that with the expansion programme, it is attempting to broaden its operations beyond production and refining, and integrate petrochemicals at its current and planned grassroots refining complexes.

Last week, Dow Chemical said it was planning power generation facilities, ethane extraction and chemicals production at its proposed Ras Tanura joint venture with Aramco.

The venture would be integrated with Aramco’s 550,000 bbl/day refinery at Ras Tanura and involve the construction of new power generation facilities, ethane extraction capabilities and chemicals production plants.

In June, an Aramco spokesman told ICIS news that a similar project for its Yanbu refinery was under consideration, as the company evaluated options to upgrade the existing 235,000 bbl/day refinery into an integrated refinery, olefins, and aromatics complex that would provide a diverse line of petrochemical products.

By: Anuradha Rao
+65 6780 4359

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