Wednesday, Feb 14, 2007
DUBAI (Dow Jones)--Saudi Aramco Shell Refinery Co., a joint venture between Saudi Arabian Oil Co. and Royal Dutch Shell PLC, will shut down several units as part of a scheduled maintenance program in March, a senior company source said Wednesday.
Sasref refinery will undergo a major turnaround that will see several units being shut down for inspection, including the refinery's hydrocracker, which will be off stream for about thirty days, the company source told Dow Jones Newswires, without providing an exact timeframe.
The Jubail, eastern Saudi Arabia-based refinery has processing capacity of 305,000 barrels a day and produces benzene, fuel oil, gasoil, kerosene and naphtha among other products, according to Sasref's Web site.
The refinery, which processes Arabian light crude oil supplied from Saudi Aramco, runs two crude distillation units, a visbreaker unit, a thermal gasoil unit and the hydrocracker.
Sasref is also looking to make a final investment decision in July on the installation of an ultra-low sulfur diesel, or ULSD, unit at the refinery, according to the source.
The decision will follow the completion of early design and engineering works by ABB Lummus Global, a unit of ABB Ltd., the source said.
The project is expected to cost as much as $300 million to implement, according to industry estimates.
A decision on whether to add a major aromatics complex at the refinery has not been completely abandoned, the source said.
The project was put on hold last year due to spiraling costs as a result of rising prices for contractors, materials and equipment. However, if costs come down, the project may still go ahead, the source said.
Refiners in the Middle East are investing in upgrading and expanding their facilities to meet rising international demand and tighter environmental specifications, in particular in Europe and in the U.S.
-By Oliver Klaus, Dow Jones Newswires, +9714 229 2806 Oliver.Klaus@dowjones.com
(END) Dow Jones Newswires
14-02-07 0714GMT
