The Abu Dhabi National Energy Company, popularly known as Taqa, and Japan’s Jera have partnered with Saudi Aramco to build an energy and stream-generating complex in Saudi Arabia. The firms announced on Thursday that the plant will provide up to 475 megawatts of electricity and 452 tonnes of steam per hour. This will support the $11 billion Amiral petrochemical complex.
It is worth noting that the Amiral petrochemical project includes one of the largest mixed-feed steam crackers in the GCC region. This project is seamlessly integrated with the existing Jubail-based Saudi Aramco Total Refining and Petrochemical (Satorp) refinery. A steam cracker breaks down light hydrocarbons like ethane, propane, and light naphtha to yield ethylene.
Farid Al Awlaqi, the chief executive of Taqa Generation stated the aim of the project. Taqa is eager to construct a productive cogeneration facility to lower carbon emissions and support Satorp’s long-term decarbonization goals.
He added, “The agreement will bolster Taqa’s efforts in building on our growth and executing on our 2030 goals.”
The electricity and steam plant will be constructed and operated by a joint entity owned by Taqa and Jera under a 25-year arrangement. There is also the possibility of extending this arrangement for an additional five years upon mutual agreement.
Moreover, both firms will additionally manage the operation and maintenance of the plant via a dedicated special purpose entity. The project incorporates plans for the eventual installation of a carbon dioxide capture facility and the ability to operate using hydrogen.
Steven Winn, chief global strategist of Jera talked about the importance of this project. He said that “The cogeneration plant will not only enhance the Amiral complex’s operational efficiency, but also demonstrates our commitment to environmental stewardship.”
In addition the project will have the capacity to produce 1.65 million tonnes of ethylene and other industrial gases per year according to the the companies.
Aramco also stressed the benefits of this project. It stated that the project will bring in over $4 billion in new investment across a range of industrial sectors. It will also generate around 7,000 employment in Saudi Arabia, both directly and indirectly.
Notably, Aramco completed a $3.4 billion transaction last year to buy a 10% share in Rongsheng Petrochemical. Rongsheng Petrochemical is a company listed on the Shenzhen Stock Exchange.
In December, Aramco agreed to purchase a 40% ownership share in Gas & Oil Pakistan (GO), a downstream fuels, lubricants, and convenience store operator. This move marks Aramco’s entry into Pakistan’s petroleum retail business.
The company has also committed to acquiring a 100% equity interest in Esmax Distribuscion, a Chilean downstream retailer of fuels and lubricants.
It is worth mentioning that Aramco and TotalEnergies granted contracts last year for the construction of the Amiral petrochemicals complex.
Saudi Aramco
Saudi Aramco, a prominent player in the global energy sector, is a mainstay of the sector. Since its founding in 1933, it has had a significant impact on both the Saudi Arabian economy and the world energy scene. The corporation’s headquarter is in Dhahran. Aramco is involved in all aspects of the hydrocarbon value chain, including exploration, production, refining, distribution, shipping, and marketing.
As the national oil company of Saudi Arabia, Saudi Aramco oversees the largest proven crude oil reserves globally. This enables it to maintain a significant position in the global oil market. Its extensive network of oil and gas fields, including the iconic Ghawar Field, forms the backbone of its operations. This ensures a reliable supply of energy to meet domestic and international demands.
Beyond its traditional oil and gas activities, Saudi Aramco is committed to driving innovation and sustainability in the energy sector. The company invests heavily in research and development to enhance efficiency, reduce environmental impact, and explore alternative energy sources. Initiatives such as carbon capture and utilization, renewable energy projects, and the development of cleaner fuels underscore its dedication to sustainable practices. They also aim to address climate change concerns.
Saudi Aramco’s refining and petrochemical operations are among the largest and most advanced in the world. Through strategic partnerships and joint ventures, Saudi Aramco has broadened its market reach and diversified its products. This has allowed the company to optimize the value derived from its hydrocarbon reserves. This comprises, among other things, businesses like Petro Rabigh, Sadara Chemical Company, and Satorp.
Saudi Aramco, as a state-owned corporation, is vital to Saudi Arabia’s endeavors towards economic development and diversification. Its contributions go beyond energy. It also covers social programs, and infrastructure investments. Moreover, it boosts local content and job creation.
Saudi Aramco is a major player in the global energy market. This is due to its unwavering dedication to quality, innovation, and sustainable growth. It continues to shape the future of energy while providing value to its stakeholders and the communities it serves.
Related Topics:
Saudi Aramco CEO Calls for Energy Transition Reset
Aramco to Invest in Carbon Capture Startup
Deputy Minister of Industry, Aramco Officials Review National Industrial Strategy
