Aramco, Dow mull petrochem complex relocation to Jubail

25-Mar-10
Saudi Aramco and Dow Chemical are considering relocation of their planned US$20 bln plus petrochemical complex to Jubail or Ras Azzour from Ras Tanura. The complex at Ras Tanura was planned to produce 8 mln tpa of petrochemicals. However, the high cost of land reclaimation at Ras Tanura and congestion at the site have evoked a change of plans. About two to three months will be required to get approval for the relocation from Saudi authorities. The size of the project wais expected to be unchanged with a slight additional cost for reconducting studies on the new area and laying of pipelines. However, overall project cost is expected to fall due to the lower land expense. The Saudi government has already completed an expansion phase of infrastructure at Jubail, where plots of land are ready for construction. The project continues to progress through the initial development phases. The evaluation phase of the project is on schedule and will be completed later this year.
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