ArcelorMittal plant begins production in Jubail

Updated 22 January 2014
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ArcelorMittal plant begins production in Jubail

ArcelorMittal iron and Steel Company in the Kingdom has started commercial production at its plant in Jubail 2 Industrial Zone.
The mill in Jubail Industrial City will have a capacity of 600,000 tons a year with an investment in excess of a billion dollars. About two-thirds of its capacity will be used for tubular products and the remainder for pipelines
Company CEO Timothy Erway said: “The plant’s commercial production has successfully begun; we thank the Royal Commission and all the partners."
He explained that the objectives of the company are to contribute in localizing the industrial sector in Saudi Arabia, transfer the technology and provide job opportunities to Saudis.
The project aims to ensure the needs of Saudi Arabia and the Gulf countries with oil and gas pipes of various types and sizes.
He said: “The company plans for large investments in Saudi Arabia due to the extensive facilities provided by the Royal Commission in Jubail." He mentioned that the plant is the first of its kind in the Gulf region and the first plant to start production in Jubail 2.
"The project represents a connection with the mother company and its subsidiaries around the world. It decided to divert its investments toward the Saudi, Gulf and the Middle East markets to produce iron and steel and its derivatives to meet the growing demand in the region,” he said.
“The production targets new projects, especially in Jubail and meet the needs of the Kingdom and Gulf countries of oil and gas pipes in multiple types and sizes. The facility will employ more than 600 workers when fully operational."
ArcelorMittal Jubail plant will be the largest seamless tubular products in the Middle East.
ArcelorMittal Jubail is a joint venture between the world's largest steel company, ArcelorMittal, and Al-Tanmiah Company for Industrial and Commercial Investment.
The majority shareholder in Al-Tanmiah Company is Bin Jarallah Group based in Riyadh. Total project investment is in excess of SR3 billion.
The Royal Commission of Jubail and Yanbu has started the modern industrial city located west of the local industrial city. The location was chosen as it is near the feedstock resources and the facilities of the infrastructure in industrial Jubail.
The construction work for Jubail Industrial City 2 is in full swing. It is expected to attract over SR200 billion in investment mainly from international sources.
The development of the second Industrial City is done in four phases, which are to be undertaken during the next 22 years.
The Phase I was completed in 2007, Phase II was from 2008 to 2012, Phase III from 2013 to 2018, and Phase IV from 2019 to 2022.
As with the original Jubail development, the Royal Commission for Jubail and Yanbu is undertaking the project under the supervision of Bechtel, which has played a key role in the development of Jubail during the last 30 years.
The total four phases of development for Jubail Industrial City 2 is expected to cost about SR14 billion — Phase I SR4.7 to SR 5 billion, Phase II SR2.5 to SR3 billion, Phase III SR1.8 to SR2 billion and Phase IV SR2.5 to SR3 billion.


US says conserving oil is no longer an economic imperative

Updated 19 August 2018
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US says conserving oil is no longer an economic imperative

  • Fears of oil scarcity no longer driver of US energy policy
  • Surging shale production brings energy abundance

WASHINGTON: Conserving oil is no longer an economic imperative for the US, the Trump administration declares in a major new policy statement that threatens to undermine decades of government campaigns for gas-thrifty cars and other conservation programs.
The position was outlined in a memo released last month in support of the administration’s proposal to relax fuel mileage standards. The government released the memo online this month without fanfare.
Growth of natural gas and other alternatives to petroleum has reduced the need for imported oil, which “in turn affects the need of the nation to conserve energy,” the Energy Department said. It also cites the now decade-old fracking revolution that has unlocked US shale oil reserves, giving “the United States more flexibility than in the past to use our oil resources with less concern.”
With the memo, the administration is formally challenging old justifications for conservation — even congressionally prescribed ones, as with the mileage standards. The memo made no mention of climate change. Transportation is the single largest source of climate-changing emissions.
President Donald Trump has questioned the existence of climate change, embraced the notion of “energy dominance” as a national goal, and called for easing what he calls burdensome regulation of oil, gas and coal, including repealing the Obama Clean Power Plan.
Despite the increased oil supplies, the administration continues to believe in the need to “use energy wisely,” the Energy Department said, without elaboration. Department spokesmen did not respond Friday to questions about that statement.
Reaction was quick.
“It’s like saying, ‘I’m a big old fat guy, and food prices have dropped — it’s time to start eating again,’” said Tom Kloza, longtime oil analyst with the Maryland-based Oil Price Information Service.
“If you look at it from the other end, if you do believe that fossil fuels do some sort of damage to the atmosphere ... you come up with a different viewpoint,” Kloza said. “There’s a downside to living large.”
Climate change is a “clear and present and increasing danger,” said Sean Donahue, a lawyer for the Environmental Defense Fund.
In a big way, the Energy Department statement just acknowledges the world’s vastly changed reality when it comes to oil.
Just 10 years ago, in summer 2008, oil prices were peaking at $147 a barrel and pummeling the global economy. OPEC was enjoying a massive transfer of wealth, from countries dependent on imported oil. Prices now are about $65.
Today, the US is vying with Russia for the title of top world oil producer. US oil production hit an all-time high this summer, aided by the technological leaps of horizontal drilling and hydraulic fracturing.
How much the US economy is hooked up to the gas pump, and vice versa, plays into any number of policy considerations, not just economic or environmental ones, but military and geopolitical ones, said John Graham, a former official in the George W. Bush administration, now dean of the School of Public and Environmental Affairs at Indiana University.
“Our ability to play that role as a leader in the world is stronger when we are the strongest producer of oil and gas,” Graham said. “But there are still reasons to want to reduce the amount we consume.”
Current administration proposals include one that would freeze mileage standards for cars and light trucks after 2020, instead of continuing to make them tougher.
The proposal eventually would increase US oil consumption by 500,000 barrels a day, the administration says. While Trump officials say the freeze would improve highway safety, documents released this month showed senior Environmental Protection Agency staffers calculate the administration’s move would actually increase highway deaths.
“American businesses, consumers and our environment are all the losers under his plan,” said Sen. Tom Carper, a Delaware Democrat. “The only clear winner is the oil industry. It’s not hard to see whose side President Trump is on.”
Administration support has been tepid to null on some other long-running government programs for alternatives to gas-powered cars.
Bill Wehrum, assistant administration of the EPA’s Office of Air and Radiation, spoke dismissively of electric cars — a young industry supported financially by the federal government and many states — this month in a call with reporters announcing the mileage freeze proposal.
“People just don’t want to buy them,” the EPA official said.
Oil and gas interests are campaigning for changes in government conservation efforts on mileage standards, biofuels and electric cars.
In June, for instance, the American Petroleum Institute and other industries wrote eight governors, promoting the dominance of the internal-combustion engine and questioning their states’ incentives to consumers for electric cars.
Surging US and gas production has brought on “energy security and abundance,” Frank Macchiarola, a group director of the American Petroleum Institute trade association, told reporters this week, in a telephone call dedicated to urging scrapping or overhauling of one US program for biofuels.
Fears of oil scarcity used to be a driver of US energy policy, Macchiarola said.
Thanks partly to increased production, “that pillar has really been rendered essentially moot,” he said.