Work on industrial gases project begins

01 August 2016

Work has begun on Saudi Aramco’s $2.1 billion industrial gases complex in Jazan.

Ground was broken at the site by Jazan Gas Projects Company, a joint venture between Saudi-based Acwa Holding and US-based Air Products. The facility will serve Saudi Aramco’s Jazan refinery and terminal.

Once ready, the complex will supply a total of 75,000 tonnes per day of industrial gases (20,000 of oxygen and 55,000 of nitrogen), for 20 years to Saudi Aramco’s refinery.

The contract was awarded to JGPC by Saudi Aramco in 2015 to build, own and operate the world’s biggest industrial gas plant.

Mohammad Abunayyan, chairman of JGPC and Acwa Holding (the majority shareholder), commented at the site: “Since the contract was awarded, we are very proud to have demonstrated outstanding infrastructure financing which has enabled us to be well advanced with the build schedule. We have also recruited a highly skilled team to manage operations and underpin our values for exceptional quality and customer service.”

Abunayyan said construction started a month earlier than planned and that initial drawings had been issued and there was a clear plan of mobilisation to Jazan going forward.

The gas complex will require 600 MW to operate and will consist of six air separation trains.

The plant will produce oxygen and nitrogen which will be supplied to the gasifier for generating the gas necessary to run the power generators and to provide feedstock to the refinery and the adjacent Jazan Economic City. Air Products’ latest technology will be utilised for the production of the gases.

This will allow the integrated gasification combined cycle (IGCC) plant to economically and efficiently generate enough electricity to cover the refinery’s needs, enable the development of small industries, and provide power for communities in the area.

Fuad Al Azman, the general manager of Jazan Area Projects, said: “This is the largest third-party project Saudi Aramco has awarded to the private sector, and as such, demonstrates its faith in the joint capabilities of Acwa Holding and Air Products to develop giant infrastructure projects of strategic importance in the kingdom.”

The ground-breaking ceremony also included the unveiling of an inscribed foundation stone. The gas complex will create an estimated 100 direct local jobs when in operation and be a cornerstone development in the expansion of Jazan Economic City, a strategic area of growth for Saudi Arabia.

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