Nama Plans $6Bn Jubail Private Export Refinery Venture
Arabian Industrial Development Company (Nama) announced on 6 May that Fluor and Shaw Stone & Webster had completed a scoping study for a planned private sector crude oil export refinery at Jubail with capacity of 400,000 b/d, at an estimated cost of $6bn. The facility would also produce petrochemicals. A Nama statement said the company was evaluating several potential joint venture partners. Start-up is projected for 2011.
Earlier this year Nama announced that its affiliate (51% stake; Al-Zamil 49%) Jubail Chemical Industries Company (JANA) would be doubling its epoxy capacity to 60,000 tons/year. Starting in 2007, Hassad Petrochemical Company (another Nama affiliate) will begin production, with capacity to produce 30,000 t/y of epichlorohydrin, 50,000 t/y of caustic soda, 45,000 t/y of chlorine, 58,000 t/y of hydrochloride acid and 45,000 t/y of calcium chloride (MEES, 16 May 2005). Last month it was announced that the Saudi Industrial Development Fund (SIDF) had agreed to grant Nama a SR315mn ($84mn) loan for its SR700mn ($187mn) Hassad project (MEES, 1 May). Most of the output will be used to supply Nama’s affiliates (the caustic soda will be used as feedstock for an existing soda plant operated by Arabian Alkali Company-SODA), while the remainder will be sold on the local and global markets. Last year UK-based Foster Wheeler Energy was awarded a project engineering services (PES) contract by Jubail Chemical Industries Company (JANA) for the Hassad project (MEES, 11 April 2005). Nama is also evaluating plans to double production capacity of SODA in which it has a 75% stake (with Al-Zamil holding 25%) to 100,000 t/y of caustic soda prills.
