Construction starts on $2.1bn Saudi gas complex

Jul 12, 2016 12:00 AM

Construction has started at a multi-billion dollar industrial gas complex that will serve Saudi Aramco’s Jazan refinery and terminal.

The contract was awarded to ACWA Holding and Air Products by Saudi Aramco in 2015 and the two companies formed Jazan Gas Projects Company (JGPC) to build, own and operate what's set to be the world’s biggest industrial gas plant.

The gas complex will require 600 MW to operate and will consist of six air separation trains. The plant will use technology developed by Air Products to produce oxygen and nitrogen which will supply the gasifier to generate the gas necessary to run the power generators and to provide feedstock to the refinery and the adjacent Jazan Economic City.

The plant is estimated to generate enough electricity to cover the refinery’s needs, enable the development of small industries, and provide power for communities in the area.

On completion, the complex will supply a total of 75,000 metric tons per day of industrial gas, 20,000 oxygen and 55,000 nitrogen, for 20 years to Saudi Aramco’s refinery.

Mohammad Abunayyan, chairman of the JGPC Board and chairman of ACWA Holding's board, the majority shareholder said: “Since the contract was awarded, we are very proud to have demonstrated outstanding infrastructure financing which has enabled us to be well advanced with the build schedule. We have also recruited a highly skilled team to manage operations and underpin our values for exceptional quality and customer service.

"Construction on-site started a month earlier than planned, initial drawings have been issued and we have a clear plan of mobilisation to Jazan from this date.”

Fuad Al-Azman, general manager of Jazan Area Projects, said: “This is the largest third party project Saudi Aramco has awarded to the private sector, and as such, demonstrates its faith in the joint capabilities of ACWA Holding and Air Products to develop giant infrastructure projects of strategic importance in the Kingdom.”

“We have a strong commitment to excellence across all areas of the project in particular health and safety, social responsibility and environmental stewardship and sustainable practices, said Mr. Abunayyan.

“Together, we will continue to drive strong performance across the company and look forward to the commissioning of the most advanced industrial gas facility in 2018 in tandem with the refinery.”

The gas complex is expected to create an estimated 100 direct local jobs when in operation and be a cornerstone development in the expansion of Jazan Economic City, a strategic area of growth for the Kingdom of Saudi Arabia.

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