Ras Al-Khair’s power plant to generate more jobs

Updated 19 February 2014

Ras Al-Khair’s power plant to generate more jobs

Ras Al-Khair’s desalination and power plant project is considered as the largest plant for desalination of saline water in the world. Its first power plant with the capacity of generating more than 400 MW has started operating.
The plant was connected to the National Electric Power Company (NEPCO) in coordination with the National Grid Company as the first step of operating the complete system of power plant units.
Saline Water Conversion Corporation (SWCC) Gov. Abdul Rahman bin Muhammad Al-Ibrahim said the gas turbines would be running for the rest of the groups respectively according to the planned program.
The corporation intends to generate more than 800 MW during the second quarter of 2014, which will enhance the national grid to meet the demand for electric power in which the corporation is a key partner in providing it for industrial consumers and others.
Al-Ibrahim pointed out that the percentage of completing the project of Ras Al-Khair plant exceeds 80 percent, and it is expected to start producing water before the end of the first quarter of 2014.
Al-Ibrahim added that the cost of Ras Al-Khair desalination and power plant project and the transmission lines from the plant has reached SR23 billion.
The total length of the transmission lines from Ras Al-Khair plant to Riyadh and Hafr Al-Batin region is 1,290 km (double lines) with production capacity of 1,025 million cubic meters of desalinated water per day and electricity production capacity of 2,400 MW.
In addition, Al-Ibrahim stressed that Ras Al-Khair plant is the first plant established by the SWCC using compound production technology with efficient fuel consumption.
Al-Ibrahim said: "Ras Al-Khair plant project would provide 15,000 job opportunities while constructing the plant and its transmission lines to Riyadh and Hafr Al-Batin."
He said: "It will provide 3,500 job offers after establishing the plant, including 1,500 jobs in desalination department and 2,000 job offers with the contractors. These job offers represent the largest career opportunities in a project of this size."
He added: "The project will provide 14 great investment opportunities for national companies and it would contribute in supporting the national economy and provide more job opportunities for the youth in the Kingdom."

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.”