• Home
  • Tag: KSA Oil and Gas News

Saudi Arabian Oil and Gas Market Update Nov, 2013

• Local contractor wins Jeddah substation deal – Substation will be located near Jeddah airport.
• UACC Sila ex Jubail
The first diesel cargo will be loaded by Total and will most likely have a sulphur content of 500 parts-per-million (ppm), the sources added. It could head to East Africa, though details are not firm yet, one of the sources said. It looks like it will be 500 ppm but the refinery is still processing,” the source added. Aramco Trading is expected to load its share of the cargo after Total, in the first half of October, a second source said. The refinery is expected to eventually start shipping 10 ppm sulphur diesel cargoes, which are compatible for the European market, once its secondary units are running, the source added.

• Potential jet fuel production from SATORP is estimated to be less than 100,000 mt/month, a trade source from the Middle East suggested. Separately, another trader said: “I would think it will need at least another three months for the refinery to stabilize before we see steady export volumes.”
• Local contractor wins Jeddah port electricity deal – Nesma Electric to install 110kV substation.

• Apicorp acquires stake in Saudi-based Taqa.
• Saudi aviation authority raises $4bn sukuk.
• Food conglomerate Savola will use capital raised to buy stakes in its subsidiaries
• JGC Corporation sole bidder for package at $3bn Saudi Aramco refinery.
• Siemens confirms value of Riyadh metro contract.
• Saudi Railway Company invites interest in North-South line project.
• Ras Al-Khair to Riyadh Water Transmission Pipeline: Phase 2 and 3 – Saline Water Conversion Corporation in Saudi Arabia is building pipelines to transmit desalinated water from plants at Shoaiba, Ras al-Khair and Jubail.
• Marafiq is building an independent water and power project in Saudi Arabia to supply Yanbu Industrial City.
• Yanbu Aramco Sinopec Refining’s facility is one of two new plants that will increase the kingdom’s supply of petroleum products to the international market.
• Prophet Mosque Expansion in Medina – The expansion will accomodate up to one million worshippers.
• A joint venture between Saudi Aramco and Sumitomo Chemical to expand the existing ethane cracker and aromatics complex.
• Saudi Arabia Group I Base Oil quality grades find its way into UAE market.
• Saudi Arabian Oil Co.cut differentials used in determining the official selling prices for its light grades to customers in Asia.
• Saudi Aramco to release design tender for shale gas – Saudi Arabia to be first country in the Middle East to develop shale.
• Acwa Power to sign Rabigh 2 IPP contract by end of October – Configuration of plant has changed since local developer was selected as preferred bidder in January.
• SNC Lavalin and MECS favourites for Maaden sulphur package – Maaden package includes power plant construction at planned $7bn phosphates city in Saudi Arabia.
• Acwa prepares for initial public offering in late 2014 – Saudi power developer also planning sukuk issue before end of 2013.
• Saudi Aramco prequalifying contractors for Jizan water system.
• Saudi Aramco Cuts November Light Crude Offsets to U.S., Asia.

• ENOC sets up oil & gas logistics venture in Saudi Arabia – UAE fuel retailer Emirates National Oil Company (ENOC) has inked a deal with Tristar Transport, a Dubai-based multi-modal liquid logistics service provider with a global network, to set up a new joint venture (JV) in Saudi Arabia.

Saudi Arabia Oil and Gas Market Update

Main Update Highlights from entire month of June, 2013

Saudi Arabia and Egypt sign power line agreement ‐ Cross‐border power line will have capacity
to transport 3,000MW of electricity a day

Riyadh sets pace for light‐rail plans ‐ The pending contract awards on the Riyadh scheme will set
the standard for future Saudi metro projects.

Biggest project finance deal of 2013 signed by Aramco and Dow ‐ Saudi Aramco and Dow sign
$12.5bn Sadara financing.

Saudi Aramco awards contracts at $7bn Jizan refinery. Japanese and European contractors join
South Koreans in winning contracts at downstream project in Saudi Arabia. Saudi Aramco has awarded
seven contractors engineering, procurement and construction (EPC) packages at the $7bn Jizan refinery
project in the south of Saudi Arabia. Aramco announced it had made the awards via its website on 21

WorleyParsons historic 4th Aramco contract ‐ Australian engineering contractor WorleyParsons
has said that it agreed to terms with Saudi Aramco which will see its current Maintain Potential
Programme (MPP) contract extended for a further two years.

Jazan Refinery contracts signed ‐ Ceremony held to sign the engineering, construction and
procurement contracts of the Jazan Refinery and Terminal. The Project will raise gasoline production by
80 MBD and diesel production by 250 MBD, and will produce approximately 1 million tons per annum
(MTA) of benzene and paraxylene petrochemical products. Once completed by the end of 2016, the
Project will be capable of processing 400 thousand barrels per day (MBD) of heavy and medium Arabian
crudes. The Terminal, which is part of the Project, will accommodate Very Large Crude Carriers (VLCCs).
The Project also features a 2400‐MW high‐efficiency combined cycle power plant to fulfil the electricity
requirements of the Refinery as well as a large part of the electricity needs of the west coast. Khalid G.
Al‐Buainain, senior vice president, Engineering, Capital & Operations Support, Saudi Aramco, signed the
contracts with representatives of eight local and international construction and procurement
companies; namely: Al‐’Ali Al‐Ajmi Group, Petrofac Saudi Arabia Ltd., Hyundai Saudi Arabia Ltd., Hanwa
Engineering & Construction Corporation, JGC Corporation, Hitachi Plant Technologies Ltd., SK
Engineering & Construction and Technicas Reunidas.

Sources: Saudi Magazines, Newspapers and Websites