Saudi port tender deferred on Jazan refinery location

Moving the refinery would result in changes to the port and utility infrastructure.
Saudi port tender deferred on Jazan refinery location
TENDER DEFERRED: Developers for Saudi Arabias Jazan Economic City have deferred a harbour construction tender because of possible changes in the location of an oil refinery. (Getty Images)
By Bloomberg
Tue 25 May 2010 11:20 PM

Developers of Saudi Arabia’s Jazan Economic City deferred a harbor construction tender for the Red Sea project because of possible changes in the location of an oil refinery planned for the site.

Saudi Aramco and the Jazan developers are in “on going” discussions about the refinery, MMC Corp, the Malaysian company jointly managing the project, said in an emailed statement today. Moving the refinery would result in changes to the port and utility infrastructure, MMC said.

MMC and Saudi Binladin Group are working on the project planned for the southern part of Saudi Arabia’s Red Sea coast. Jazan Economic City could provide 500,000 direct and indirect jobs, according to the project’s website.

Saudi Aramco plans to build on its own two of three planned 400,000 barrel a day refineries in the kingdom. Plants at Yanbu and Jazan along Saudi Arabia’s Red Sea coast will be built by Aramco while a complex at Jubail on the Arabian Gulf coast is a venture with Total SA.

The Saudi Arabian government dropped international bids to develop the Jazan refinery in January and assigned the project to Aramco. The company declined to comment on plans for the refinery, through a spokesman who asked not to be identified.

Developers for Jazan City said works for a steel plant at the site are on schedule. Construction of a power plant depends on whether the refinery and Saudi Electricity Co, the state controlled power distributor, confirm their need for power.

Saudi Arabia Mining Co may take a stake in an aluminium smelter planned for the site, pending discussions between the partners, MMC said in the statement.

The state oil company is seeking project managers to oversee tendering and construction of the refinery and may name a contractor to the role by the end of the year, magazine MEED reported, without identifying its sources for the news.

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