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August 29, 2013

JGC joins power-and-steam supply business in Saudi Arabia

Gerald Ondrey

JGC Corp. (Yokohama, Japan; www.jgc.co.jp) announced today that, together with Marubeni Corp. and Aljomaih Holding Co., (Aljomaih; Dammam, Saudi Arabia), it has signed a contract to provide electric power and steam to three oil-and-gas complexes owned by the Saudi state-owned oil company Saudi Aramco. The complexes are located in Eastern Saudi Arabia, in the Abqaiq, Hawiyah, and Ras Tanura regions. Under the contract, JGC and partners will construct cogeneration facilities and operate those for 20 years.

Following from the finalization of the contract, JGC, Marubeni, Aljomaih, and Saudi Aramco will set up a special-purpose company in Saudi Arabia, and construct cogeneration facilities inside the oil and gas complexes that will provide about 900 MW of power and around 1,500 ton/h of steam. The construction is scheduled for completion in 2016. The total cost of the project will be $650 million (approximately Ŷ65 billion), which will be funded by a project finance scheme.

Currently, these three Saudi Aramco oil & gas facilities generate their own steam while purchasing electric power from the Saudi Electric Company. The more efficient cogeneration facilities are part of Saudi Aramco's continuous efforts to enhance energy efficiency.

 


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