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Tue 2 Feb 2010 12:27 AM

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Saudi and Japan's JGC sign refinery emissions deal

Two units to be added by Japanese firm to reduce sulpher dioxide emissions at refinery.

Saudi and Japan's JGC sign refinery emissions deal
ENVIRONMENTAL PERFORMANCE: Saudi Aramco, and Royal Dutch Shell, have signed a deal with Japans JGC to improve the environmental performance of the Sasref refinery. (Getty Images)

State oil firm Saudi Aramco and Royal Dutch Shell said on Monday they signed a deal with a unit of Japan's JGC to improve the environmental performance of their joint Sasref refinery.JGC Gulf International will carry out the engineering, procurement and construction work to add two units to reduce sulphur dioxide emissions at the Sasref refinery in Jubail on Saudi Arabia's Gulf coast, a statement said.

In an emailed statement, Abdulhakim al Gouhi, president, Sasref, said: "On start up, Sasref sulphur dioxide emission will be less than 250 part per million. This will make Sasref's emission the lowest of its kind in the kingdom."

The company did not give a value for the deal nor say when the project would be completed. Industry sources have said the project is estimated to cost $100 million.

The project will not improve the profitability of the company, Gouhi said.

The 305,000 barrels per day refinery will mainly export fuel oil, naphtha, gas oil and jet fuel.

Japan's Chiyoda along with India's Larsen and Toubro, South Korea's Hyundai Engineering, Italy's Saipem, and Japan's Toyo Engineering had also bid for the project. (Reuters)

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