Jazan Economic City to become key contributor to Saudi economy

Updated 26 February 2015

Jazan Economic City to become key contributor to Saudi economy

Jazan Economic City will become a key contributor to Saudi Arabia’s economy as current infrastructure and projects development will provide a solid base for further investments in heavy and secondary industries, petrochemicals, mining and conversion industries, Khalid A. Al-Falih, president and CEO, Saudi Aramco said at the Jazan Economic Forum (JEF) in Jazan City.
The forum is being attended by over 500 Saudi Arabian and foreign dignitaries and business leaders, and is showcasing investment opportunities at the Jazan Economic City (JEC) project.
In his opening remarks, Al-Falih said the company was proud to play a key role in the development of Jazan. 
He said Jazan Economic City was part of the Saudi Government’s vision to create economic bases across the Kingdom to achieve a diversified economy and balanced regional development. 
“The Jazan Economic City  vision seeks to invest in the region’s natural resources, diverse geographic features and human resources to make a major positive difference to the area’s future, so that Jazan will become a significant  contributor to the Kingdom’s economy,” said Al-Falih.
According to Al-Falih, Saudi Aramco will build Phase I of the project which will include smart infrastructure to meet energy, utilities and transportation requirements of a diverse industrial base. 
“Saudi Aramco has been entrusted to build Jazan’s strategic infrastructure through the development of a refinery and terminal, a power plant, a commercial seaport, a water desalination plant, roads and water and sanitary drainage systems, in addition to connecting electricity,” he said.
Jazan’s rich endowment of mineral and agricultural resources makes it ideal for the region to prosper and thrive into a major economic city in the Kingdom, he added.
Al-Falih also said that Saudi Aramco has taken a pro-active approach to human capital development for the Jazan people by launching a number of training initiatives to create a highly-capable and qualified workforce, drawn primarily from the area’s youth, to fill jobs in all stages of the project. 
These skills and training initiatives began in 2014 when Saudi Aramco and the Technical and Vocational Training Corporation (TVTC) signed the agreement of the Jazan Contractors Alliance for Training and Employment, also known as “Maharat” by launching two training institutes.
“The Saudi Aramco — TVTC alliance is an innovative strategic partnership with the refinery project’s contractors to train and employ 5,000 young people from Jazan in various construction-related professions and crafts over four years.  Longer term, we aspire for the number of jobs available in Jazan to reach 75,000,” said Al-Falih.

Saudi oil refinery in Gwadar to help Islamabad save $3 billion a year

Updated 17 February 2019

Saudi oil refinery in Gwadar to help Islamabad save $3 billion a year

  • The refinery would produce up to 300,000 barrels per day once completed
  • Saudi Arabia is also setting up reservoirs for liquified natural gas in Pakistan, says Petroleum Minister Ghulam Sarwar Khan

ISLAMABAD: Pakistan expects to agree a deal to build an oil refinery and petrochemical complex at the Balochistani deep-sea Port of Gwadar, during the first state-level visit by Saudi Arabia’s Crown Prince Mohammed bin Salman.

The deal will see Pakistan join with Saudi Aramco to build the facility, expected to cost $10 billion.

“We are working on feasibility studies for the establishment of the oil refinery and petrochemical complex in Gwadar, and will be ready to start by early 2020,” Pakistan’s Minister for Petroleum Ghulam Sarwar Khan told Arab News on Thursday.

Once established, the project will help the South Asian nation cut its annual crude oil imports by up to $3 billion annually, in addition to creating thousands of job opportunities in the impoverished western province.

The country spends more than $16 billion each year on importing 26 million tons of petroleum products, including 800 million cubic feet of liquified natural gas (LNG) from Saudi Arabia, the UAE and other Gulf countries.

Khan claimed the refinery would produce up to 300,000 barrels per day once completed.

“The Saudi authorities have asked us to complete all the initial work on the project on a fast track, as they want to set it up as early as possible,” he said.

A Saudi technical team, including Energy Minister Khalid Al-Falih, has visited Gwadar twice in recent months to examine the site for the refinery, getting briefings from Pakistani officials on security in the area near the border with Iran.

“We will ensure complete security for Saudi investments and people working on the project. A detailed security plan has already been chalked up with help of the security agencies,” Khan added.

Pakistan currently has five oil refineries, but they can only satisfy half of its annual demand. Islamabad and Riyadh have long maintained strong ties, with the latter repeatedly offering the former financial assistance. Last year, the Kingdom guaranteed Pakistan $3 billion in foreign currency support for a year, and a further loan worth up to $3 billion in deferred payments for oil imports, to help stave off an economic crisis. The Islamic Republic also received $3 billion from the UAE to protect its foreign reserves.

Khan added that the Pakistani-Arab Refinery Co. (PARCO) was also setting up an oil refinery at Khalifa Point, near the city of Hub in Balochistan. 

“The work on this project is at an advanced stage. Land for it has been acquired and other formalities are being fulfilled,” he said.

Khan hopes the world’s perception of Pakistan will change upon completion of these deals, after years of war in the surrounding region. Exxon Mobil returned to Pakistan last month after 27 years, and started offshore drilling with $75 million of initial investments. 

“All results of the drilling are positive so far, and we expect huge oil and gas reserves to be discovered soon,” he said.

“More foreign companies are contacting us to invest in offshore drilling and exploration. Saudi Arabia is also setting up reservoirs for LNG in Pakistan. More Saudi investment will come to Pakistan with the passage of time.”