Saudi Aramco, Sumitomo to Form JV Refinery/Petchem Plant

By Anonymous

Saudi Aramco and Sumitomo Chemical Co., Ltd. signed an agreement to become joint-venture partners in the development of an integrated refinery and petrochemicals complex in Rabigh on the Red Sea.

The project will take place at Saudi Aramco’s 400,000 b/d crude oil refinery in Rabigh, which will act as the base platform for an integrated petrochemical complex, the companies said.

An ethane-based cracker will be the centerpiece of the expanded site, producing ethylene, propylene and about 60,000 b/d of gasoline, among other products.

Saudi Aramco and Sumitomo have already completed a joint feasibility study on the project and have now moved into an early phase of execution with the recent award of multiple engineering, procurement and construction contracts, they said.

Construction is expected to commence during the first quarter of 2006.

Copyright Hart Energy Publishing, LP Oct 2005