October 19, 2011 at 6:45 pm #2092
Saudi New Yanbu Refinery to Cost SR 20bn
MENAFN-Arab News/ Oct 11, 2011 The Royal Commission for Yanbu (RCY) announced on Monday that it was building a major refinery on the Red Sea at a cost of SR20 Billion, adding that it would be ready within three years.
It will be the third largest refinery on the west coast of Saudi Arabia, said Alaa Abdullah Naseef, CEO of RCY.
He said RCY was also going ahead with a variety of new industrial projects. He emphasized the importance of the industrial sector in boosting the Kingdoms development.
The refinery will produce petroleum products that will be used for petrochemical industries, Naseef said. There are plants in the Yanbu Industrial City to produce solar cells, plastic materials used for cars, in addition to building materials.
He estimated total spending on Yanbu residential and infrastructure projects last year of about SR 30 Billion. Total investments in the industrial city have reached SR 120 Billion, he added.
Naseef pointed out the about 15,000 young Saudis are working at various industries in the city. We have recruited 1,000 youn Saudis to train and employ them at different industrial plants.
October 19, 2011 at 6:47 pm #4875
Here is update on the 400 MBD Yanbu project (with estimated 6.3 kmtpd petcoke) cost which has continued increase since original $US 6bn in 2006 doubled to $US 12 bn in 2008 and then $US 13 bn in 2010 when both partners Saudis-COP sent contractors (then SK Engr & GS Engr) back drawing board cut cost – about the time COP withdrew from the Yanbu project (also when COP withdrew UAE $US 10 bn project). Since this quote is $SR 20 bn its not direct comparison but I am sure its still higher than previous $US 12 bn.
October 19, 2011 at 6:54 pm #4874
Offline Question: Is this substantial increase in cost for Yanbu Project & will this be high sulfur petcoke?
Yes high sulfur just like Kuwait ~6-7%sulfur BUT….. just like Kuwait they are susposed be putting in Resid HDS units get it back marginal blend anode grade. If at least one 4 major Saudi expansions dont have big Resid HDS then all these mideast calciners (& smelters) are going be SOL on petcoke! Not positive yet the Kuwait expansion were putting in enough additional Resid HDS capaicty for it stay anode either (really adds to cost – which makes the SR20bn sound like the Saudis didnot).
I just ran Currency converter and got ~ 4:1 value ($US 5.36bn today)! So the $SR 20bn is only $US 5.4bh which looks be scope reduction in $US 12-13bn project.
I would say yes they had to cut scope ~nearly half – all other regional projects rebid only got 10-20% discount from high cost during 2007/09 time frame.
Also doesnt look good for these new Saudi cokers to have upstream costly Resid HDS units to keep petcoke out HS fuelcoke region and into LS Fuel/HS blend anode regime …….unless there are existing RHDS that may do batch operations for making blocked runs for the calciner needsd but even then wouldnt be at volume level MidEast region needs now to supoort all new calciners feeding new smelter capacity.
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