Saudi Aramco-Total Al-Jubail refinery venture to cost $9.6bn

18 June 2009 15:31  [Source: ICIS news]

LONDON (ICIS news)--The cost of building a new refinery at Al-Jubail, Saudi Arabia, that is part of a joint venture between Saudi Aramco and Total will be $9.6bn (€6.9bn), a Saudi Aramco spokesman confirmed on Thursday.

“The project will total $9.6bn and will involve European contractors,” said Saied Shahrani, a spokesman for the Saudi oil company.

The European contractors among the 13 companies that received the engineering, procurement and construction awards were Spain's Tecnicas Reunidas and France's Technip, said Shahrani.

Tecnicas Reunidas will be responsible for the distillation and hydro-treating unit and Technip will build the conversion unit for the plant, said Shahrani.

The spokesman said other companies awarded contracts were South Korea’s Daelim Industrial, Samsung and SK Engineering and Construction, as well as Japan’s Chiyoda and Sumitomo.

The refinery would have a processing capacity of 400,000 bbl/day and was expected to be fully operational by the second half of 2013, the spokesman said.

The refinery will be geared towards processing Arabian heavy crude into premium refined products to match rising demand for more environmentally friendly fuels, according to the spokesman.

The company expects the full-conversion refinery to maximize production of diesel and jet fuels, the spokesman said.

The facility will also produce 700,000 tonnes/year of paraxylene, 140,000 tonnes/year of benzene and 200,000 tonnes/year of polymer-grade propylene, the spokesman said.

($1 = €0.72)

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By: Alex Davis
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