1st phase of Aramco’s industrial city to be completed in 2021

Saudi Energy Minister, Khalid Al-Falih
Updated 17 July 2017
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1st phase of Aramco’s industrial city to be completed in 2021

RIYADH: Saudi Energy Minister Khalid Al-Falih said the newly approved industrial energy city project will help localize industries supportive to the energy sector.
He said the decision to establish a new energy city aligns with the Vision 2030 and supports vital infrastructure in the Kingdom.
In a statement issued late on Saturday, Saudi Aramco said that the first phase of the energy city would be completed in 2021.
The city, which will be developed over 50 square kilometers of land allocated for energy-related industries, will complete its first phase that covers almost 12 square kilometers by that date.
The Cabinet approved a proposal put forward by Saudi Aramco for the establishment of a company in the Eastern Province to undertake infrastructure development for the industrial energy city and another company to operate and maintain the city. The new project will generate thousands of direct and indirect jobs and annually add SR22.5 billion ($6 billion) to the Kingdom’s gross domestic product (GDP).
Amin Nasser, chief executive of Saudi Aramco, said the new energy city would be a milestone in efforts to localize industries and services related to energy.
The city will create an ideal and integrated environment to attract global investments; establish and develop a large number of small- and medium- enterprises (SMEs); and stimulate innovation and entrepreneurship, the Aramco chief executive said.
The city will be located between Dammam and Al-Ahsa, at the heart of energy operations. Ghawar, the world’s largest onshore oil field is near Al-Ahsa.
The Saudi Industrial Property Authority (MODON), which develops industrial cities in Saudi Arabia, has started to chalk out plans and programs with Saudi Aramco to develop and operate the city, the statement added.
Khalid Al-Salim, acting director-general of MODON, said the management of the new energy city will be jointly carried out by Saudi Aramco and Modon.
The project will support Saudi Aramco’s operations, will cut costs of products and services, and meet the needs of the oil giant’s operations, the statement said.
It will also provide drilling, exploration, production services and pipe manufacturing.
Saudi Arabia is trying to lower dependence on oil and establish new industries to expedite job creation for a rapidly rising young population.
It plans to list in stock markets up to 5 percent of its shares in Aramco, which will help it invest in other sectors to generate more revenue streams.
— With input from Reuters


US energy secretary meets Saudi counterpart after OPEC cuts

Updated 10 December 2018
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US energy secretary meets Saudi counterpart after OPEC cuts

RIYADH: Saudi Arabia’s energy minister held talks Monday with US Energy Secretary Rick Perry, after the Kingdom and its allies defied US pressure to cut oil production in a bid to prop up prices.
They discussed the “state of the oil market” and energy cooperation between the two countries during a meeting in eastern Dhahran city, the minister, Khalid Al-Falih, said on Twitter.
Perry tweeted that he discussed the need for “open, free, and fair markets with the Saudis.”
OPEC members and 10 other oil producing nations, including Russia, on Friday agreed to cut output by 1.2 million barrels a day from January in a bid to reverse recent falls in prices.
The decision came even as US President Donald Trump demanded that the cartel boost output in order to push prices down.
But Al-Falih shrugged off the pressure last week, saying “we don’t need permission from anyone to cut” production.
The US “is not in a position to tell us what to do,” he told reporters ahead of Friday’s OPEC meeting in Vienna.
Last week, for the first time in decades, the United States — which is not a member of OPEC — was a net exporter of crude oil and petroleum products.
It was the latest sign of how the shale boom has lifted the US standing on global petroleum markets, prompting talk of “energy dominance” by Trump.
Perry’s visit to Dhahran came as Crown Prince Mohammed bin Salman unveiled state oil giant Aramco’s plan for a new energy megaproject in the area known as the King Salman Energy Park (SPARK).
The energy park is expected to attract an initial investment of $1.6 billion, Aramco said.