Saudi Arabia To Invest $46 Billion In Three Petrochemical Projects

Published: 03-Sep-2009

Saudi Arabia has announced its intentions to invest around $46 billion in three petrochemical projects, Examiner reported. The three projects comprise of $27 billion Ras Tanura integrated refinery and petrochemical project, the $9 billion Saudi Kayan petrochemical complex at Jubail Industrial City, and the $10 billion Petro Rabigh refinery upgrade project. These projects jointly will employ over 150,000 technicians and engineers working around the clock.

Saudi Arabia can expand its petrochemical portfolio into a greater variety of polymers and polymer byproducts and increase the nation’s market base with the help of these projects.

The Ras Tanura integrated refinery and petrochemicals project will be completed in 2015-16 with a combined production capacity of 11 million tons per year of different petrochemical and chemical products. The products will include ethylene, propylene, aromatics, polyethylene, ethylene oxide, chlorine derivatives and glycol. The project is being executed by a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company at Ras Tanura in Saudi Arabia’s Eastern region.

KBR Middle East (KBR ME), a subsidiary of KBR Incorporated, is the management consultant as well as the front-end engineering and design (FEED) consultant for the project. The FEED work is being implemented by KBR ME and is projected to be completed by the third quarter of 2010. Tenders for the other contracts will be announced in 2010. The project comprises the expansion of Saudi Aramco’s Ras Tanura refinery from the current 550,000 barrels per day (BBL/d) to 950,000 BBL/d and integrating the refinery to the new petrochemical facility. Saudi Aramco-owned Juaymah gas processing plant also will be expanded and integrated with the petrochemical facility.

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