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Mar 13 2013

Shell, Aramco in Jazan gas technology agreement

Shell Global Solutions International B.V. has signed a gasification licensed technology agreement with Saudi Aramco for the largest residue gasification unit.

The Jazan Integrated Gasification Combined Cycle Project (IGCC) agreement includes the licensing of Shell gasification and acid gas removal technologies and the provision of engineering services.

Shell's CRI/Criterion catalysts and a sulphur recovery unit (SRU) will also treat the off gases from the acid gas removal unit.

Jazan is being developed as a new economic city. As part of the development, a new refinery and IGCC is to be built 70 km north of the city. The IGCC enables the gasification of low-value residue feedstock to produce syngas for power generation. The generated power will provide electricity for the Jazan refinery and supply within the Kingdom.

Shell will now be the supplier of the technology for the largest gas and residue gasification units in the world.

"This agreement further demonstrates Shell's commitment to Saudi Arabia. We are enormously proud that Shell's gasification technology was selected for this significant project, which supports an alternative approach to power generation in the Kingdom, and we very much look forward to working alongside Saudi Aramco," said Ed Daniels, executive vice president, Shell Global Solutions.

"With the award of the gasification technology license to Shell Global Solutions for the Jazan IGCC project, we are confident that the Jazan Refinery and Terminal Project will progress according to plan," said Fahad Al-Helal, executive director project management, Saudi Aramco. "This is the first time that gasification technology will be deployed in Saudi Arabia and we believe that Shell Global Solutions' experience as both an owner and operator of this technology will be very beneficial to the Jazan project."

In November 2006, Custodian of the Two Holy Mosques King Abdullah launched the Jazan Economic City Project as part of a strategic vision to boost economic activity in the southwestern region and serve growing domestic energy demand.

A 2,400-megawatt high-efficiency combined cycle power plant will form the energy backbone of the Jazan Economic City.

When it starts operating, Saudi Aramco's Jazan Refinery will process 400,000 barrels per day (bpd) of Arabian Heavy and Arabian Medium crude oil to produce gasoline, ultra-low sulfur diesel, benzene and paraxylene. A marine terminal on the Red Sea coast will accommodate Very Large Crude Carriers (VLCCs) for the supply of crude oil to the new refinery.

The Jazan Refinery and Terminal Project will provide more than 1,000 direct jobs in addition to 4,000 indirect jobs. Only three other refinery projects on the same scale as the Jazan refinery have been commissioned worldwide in the past 20 years.

© Arab News 2013

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