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Fri 22 Jul 2016 12:15 AM

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Construction work starts at $2.1bn gas complex in Saudi Arabia

Ground-breaking ceremony takes place to mark milestone for world's biggest industrial gas plant at Jazan

Construction work starts at $2.1bn gas complex in Saudi Arabia
Saudi Aramco

A ground-breaking ceremony has taken place to mark the start of construction of a $2.1 billion industrial gas complex that will serve Saudi Aramco's Jazan refinery and terminal.

The contract was awarded to ACWA Holding and Air Products by Saudi Aramco in 2015 and the two companies formed Jazan Gas Projects Company (JGPC) to build, own and operate the world's biggest industrial gas plant.

Mohammad Abunayyan, chairman of the JGPC board and chairman of ACWA Holding Board, the majority shareholder said: "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.

"Construction on-site started a month earlier than planned, initial drawings have been issued and we have a clear plan of mobilisation to Jazan from this date."

The gas complex will require 600MW to operate and will consist of six air separation trains. The plant will produce oxygen and nitrogen which will supply the gasifier to generate the gas necessary to run the power generators and to provide feedstock to the refinery and the adjacent Jazan Economic City.

On completion, the complex will supply a total of 75,000 metric tons per day of industrial gas, 20,000 oxygen and 55,000 nitrogen, for 20 years to Saudi Aramco's refinery.

Fuad Al-Azman, Jazan Area Projects general manager, 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 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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