When the Saudi Authorities allocated to the Saudi Binladin Group (SBG) and Malaysia’s MMC Corporation the mission to design and develop the $27 billion Jizan Economic City (JEC), Saudi Arabia
This refinery was supposed to be the first building block to create wealth and employment in the South region of the Kingdom.
In addition the Saudi Authorities expectation was to use Jizan complex to open opportunities to non state-owned operators such as Chinese companies. But to avoid further delay in the development of the whole JEC scheme, the decision was formed to give Saudi Aramco the leading role.
As directly linked to the refinery‘s operations, Saudi Aramco would also take over the Jizan port to supply crude and export the refined products. It would also handled the Power generation plant.
So the $7 billion refinery project would in fact include:
– $4 billion for the 400,000 b/d refinery
– $2.5 billion for the 2,600 MW Power generation plant
– $1.4 billion for the port construction
Saudi Aramco has initiated the process to pre-qualify the engineering companies for the EPC contracts to come.
The Power generation facility should be contracted on the base of Build-Own-Transfer (BOT) form and it should be designed to fit with the refinery constraints.
The completion of the whole project is scheduled for 2017.
