JGC wins PetroRabigh expansion study deal
Riyadh, June 23, 2009
Saudi Aramco and Sumitomo have awarded Japan's JGC Corporation a contract for a feasibility study on the expansion of Rabigh Refining and Petrochemical Co (PetroRabigh), the company said on Tuesday.
The study is expected to be completed by the third quarter of 2010, Aramco said in a statement.
"Once the project is proven viable, PetroRabigh will be invited to decide on the implementation of the Rabigh II project," the company said.
Turmoil in world credit markets and lower oil prices have prompted energy companies globally to review more expensive projects or cut back on spending to preserve liquidity.
PetroRabigh, an export-oriented joint venture between state oil giant Aramco and Japan's Sumitomo Chemical, started partial operation of its facilities in the fourth quarter of 2008.
In April, Sumitomo said the two firms planned to expand operations at the integrated oil and petrochemical facility by the third quarter of 2014. As part of the expansion, the firms will consider increasing the capacity of the existing ethane cracker to take in an additional 30 million cubic feet per day of feedstock ethane.
The venture will also consider building a new aromatics complex using around 3 million tonnes per year of naphtha as feedstock, and will also look at constructing various petrochemical units, the company said in April.
Investment costs could total $3.1 billion to $5.1 billion with funds to come from the venture's two parents and borrowings from a group of banks. -Reuters
More Energy, Oil & Gas Stories
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd
- Korean refiners eye more Iraq crude
- Dana starts Egypt gas plant upgrade
- Opec oil production hits new high in Feb
- Taqa-led group to buy Indian hydropower plants
- Schneider gets energy management certification
- Morocco moves ahead with $1.7bn wind farms
- Iraq approves power plant investments