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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC
Edited by the Processingtalk Editorial Team on 16 July 2003

Power plant project in Al-Jubail

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Saudi Petrochemical Company (SADAF) signed an USD170 million contract with the Jubail Energy Company to build and operate a 250 megawatt power co-generation plant at its site in Al-Jubail

Saudi Petrochemical Company (SADAF), an affiliate of Saudi Basic Industries Corporation and Shell Chemical Arabia, signed an SR 637 million (USD170 million) contract with the Jubail Energy Company to build and operate a 250 megawatt power co-generation plant at its site in Al-Jubail The signing ceremony took place on July 9

The plant is the first private independent power plant in the Middle East and is expected to start up in the second quarter of 2005.

The project will also produce 510 tons per hour of steam production capacity as part of a 20-year Energy Conversion Agreement.

The Jubail Energy Company is a 75/25 joint venture between National Power Company and CMS Generation Company.

CMS Generation Company will co-manage the construction and operation through a joint project company.

Speaking at the signing ceremony, Abdullah S Nojaidi, Chairman of SADAF and Vice President, Petrochemicals at SABIC, noted the importance of the plant to SADAF operations.

Mosaed Al-Ohali, President of SADAF and Abdulrahman Al-Zamil, Chairman of the National Power Company, signed the contract at the ceremony.

Abdullah Nojaidi said: "This is an important milestone for this region in providing a private independent power source for the first time at an industrial site.

It will equip one of our premier affiliate companies with the tools to manage its production program and help ensure SADAF power needs are met in the future".

The new power plant will receive natural gas from Aramco and provide an extra 400 MW to SADAF operating units.

It will help fulfill SADAF expansion of its styrene production with an additional 500,000 mt/y being added, raising total styrene capacity to 1 million mt/y over the next few years.

Other SADAF production lines besides styrene include 1.1 million mt/y of ethylene; 840,000 mt/y of ethylene chloride; 750,000 mt/y of Methyl Tertiary Butyl Ether; 670,000 mt/y of Caustic Soda and 300,000 mt/y of Crude Industrial Ethanol.

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