29-08-2013

JGC joins power and steam supply business in Saudi Arabia

JGC Corporation announced today that together with Marubeni Corporation and Saudi company Aljomaih Holding Co., (Aljomaih), it has signed a contract as of August 22nd to provide electric power and steam to three oil and gas complexes owned by the Saudi state-owned oil company Saudi Aramco. The complexes are located in Eastern Saudi Arabia, in the Abqaiq, Hawiyah, and Ras Tanura regions. Under the contract, JGC and partners will construct cogeneration facilities and operate those  for 20 years.

Following from the finalization of the contract, JGC, Marubeni, Aljomaih, and Saudi Aramco will set up a special-purpose company in Saudi Arabia, and construct cogeneration facilities inside the oil and gas complexes that will provide about 900 MW of power and around 1,500 tons of steam per hour. The construction is scheduled for completion in 2016. The total cost of the project will be 650 million US dollars (approximately 65 billion yen), which will be funded by a project finance scheme.

Currently, these three Saudi Aramco oil & gas facilities generate their own steam while purchasing electric power from the Saudi Electric Company. The more efficient cogeneration facilities are part of Saudi Aramco's continuous efforts to enhance energy efficiency.

JGC has conducted numerous oil and gas projects for Saudi Aramco since the year 1980, and since 2008 has operated a power, steam, and water supply business for an oil refinery and petrochemicals complex owned by a joint venture between Saudi Aramco and Sumitomo Chemical. It is believed that this previous project experience stood JGC in good stead to be chosen as a partner for this new contract.

Drawing on wide-ranging engineering technology and project management abilities cultivated through a long history of plant construction, JGC has been making investments both in Japan and overseas in power and water, renewable energy, and resource development projects. Since emerging countries are currently experiencing remarkable rates of growth, JGC makes a special effort to address the specific needs of its target markets, and contribute to the prosperity of various countries and regions through development and investment.