PetroRabigh scouting for contractor firms to commence second phase

12-Apr-10

Saudi Aramco-Sumitomo JV; Saudi-based Rabigh Refining and Petrochemical Co (PetroRabigh) is looking for contractor firms to initiate work on its second phase. Long-term growth in petrochemical demand from China has encouraged the two JV partners to consider a 25 bln SR (US$6.67 bln) expansion, to produce about 17 new products. Japan's JGC Corporation is currently conducting a feasibility study on phase II which is due to be completed by Q3-10. A final investment decision on the project will be taken once the study is completed and reviewed. The first phase of PetroRabigh was inaugurated in November with a capacity to produce 18 mln tons of refined products and 2.4 mln tons of petrochemicals each year. As part of the expansion, a capacity increase of the existing ethane cracker to take in an additional 30 million cubic feet per day (cfd) of ethane feedstock, is being considered. On the cards, for second phase, is an aromatics complex using 3 mln tpa of naphtha as feedstock. The expansion will be split into 7 construction packages for which contractors are expected to bid tenders before end of month.