RABIGH, 25 November 2007 — Petro Rabigh, a joint venture between Saudi Aramco and Sumitomo Chemical of Japan, said yesterday that its integrated oil refinery and petrochemical complex will prove a tipping point in the Kingdom’s efforts to diversify its economy and forge the development of sustainable downstream industries.
Petro Rabigh said in a statement that the massive integrated facility is being constructed at the site of Saudi Aramco’s existing Rabigh refinery, which produces 19 percent of the Kingdom’s current refining capacity. The existing Rabigh refinery, which was commissioned in 1989, has a current crude processing capacity of 400,000 barrels per day (bpd) and currently produces naphtha, kerosene, diesel and fuel oil.
The $10 billion project, located at the Red Sea port of Rabigh, is scheduled for completion in the third quarter of 2008 with commercial operations expected to commence in the fourth quarter of next year. Ethane-derived products produced at Petro Rabigh will include: ethylene, polyethylene, propylene, polypropylene, propylene oxide and ethylene glycol. Crude-oil derived products produced at Petro Rabigh will include: gasoline, naphtha, kerosene, diesel and fuel oil.
“Saudi Arabia has long thrived on oil production, but this enterprise marks a new direction,” said Saad Al-Dosari, chief executive officer, president and member of the board of directors of Petro Rabigh. “Previously Saudi Aramco produced massive amounts of relatively low-value products at the Rabigh refinery. Now we can convert these into extremely valuable commodities. Petrochemicals are all around us, in everything from car parts to shampoo. This project therefore has the potential to fuel Saudi Arabia’s manufacturing industry.”
“We are attracting people to come and build, to use the materials we produce to make things,” Al-Dosari said. “This venture will get bigger and bigger, employing many Saudis and leading to the growth of the country’s GDP. There is a great deal of excitement about this project. The atmosphere is positive, optimistic. We are laying the foundation. We are paving the way for a new Saudi Arabia.”
Petro Rabigh, launched in September 2005 as a 50:50 joint venture between Saudi Aramco and Sumitomo Chemical, is the largest combined oil refinery and petrochemical production facility ever to be built at one time.
Saudi Aramco will supply Petro Rabigh with the feedstock necessary to operate the plant, including ethane, on a long-term, fixed-price basis and will market the refined products produced by Petro Rabigh. Sumitomo Chemical will provide petrochemical international sales and marketing expertise, as well as technology licensing.
