Control System World

Saudi Aramco has completed the contractor selection process for the engineering, procurement and construction (EPC) phases of the Jazan Refinery and Terminal, in the southwest part of the Kingdom of Saudi Arabia.

After completion of front-end engineering design (FEED) work in April 2012, competitive bidding for the EPC contracts took place, and it has concluded with the selection of Saudi Arabian and international contractors to implement the mega-project.

A robust and competitive process took place for the projects' major contract packages and the following companies are among the selected contractors:

• Petrofac Saudi Arabia Ltd. (Saudi Arabia)
• Hyundai Arabia Co. Ltd. (Saudi Arabia)
• Hanwha Engineering and Construction Corp. (Korea)
• SK Engineering & Construction Co. Ltd. (Korea)
• Tecnicas Reunidas (Spain)
• JGC Corporation (Japan)
• Hitachi Plant Technologies, Ltd. (Japan)

A signing ceremony for the major packages and contracts' awards is scheduled to be held in Jazan Economic City next month at the project site.

Scheduled for completion in late 2016, Saudi Aramco’s Jazan Refinery and Terminal mega-project is expected to play a significant role in the supply of feedstock and fuels to support the growth of major industries in Jazan Economic City. The Jazan Refinery and Terminal project is expected to create numerous economic benefits, including business opportunities for local enterprises and new job opportunities.

About Jazan Refinery and Terminal Project

Saudi Aramco's Jazan Refinery and Terminal Project is a 400,000 barrel-per-day refinery with associated terminal facilities on the Red Sea near Jazan in the southwest part of the Kingdom of Saudi Arabia. Scheduled for completion in late 2016, the refinery will process Arabian Heavy and Arabian Medium crude oils, and produce gasoline, ultra-low sulfur diesel, benzene and paraxylene. The Jazan Refinery will be synergized with a world-scale Integrated Gasification Combined Cycle plant that is currently at the FEED stage.

The marine terminal will have the capacity to handle Very Large Crude Carriers (VLCCs) for the supply of crude oil to the refinery, and berths to support refined product exports from the refinery.

Yokogawa Electric Corporation announced recently that Yokogawa Saudi Arabia has been selected as the process control system supplier for the Rabigh II project, in which Saudi Aramco and Sumitomo Chemical have decided to invest. Yokogawa will supply its flagship products, the CENTUM VP production control system and the ProSafe-RS safety instrumented system for the petrochemical complex. The move is an indication that Yokogawa's business partners acknowledge its success in the Rabigh I project and has full confidence in Yokogawa's capabilities.

Since the foundation of Yokogawa Saudi Arabia in 2006, Yokogawa has strengthened its engineering capabilities in the Kingdom through the course of several mega projects. Yokogawa's success in these projects has earned the customer's confidence in its local project execution capabilities, leading to the decision for the Rabigh II project to be fully executed in Saudi Arabia at the company facilities in Dhahran Techno-Valley. The execution of this project in the Kingdom follows Saudi Aramco and Sumitomo Chemical's guidance on the maximization of Saudi Arabian content.

JGC Corporation has announced today that its wholly-owned Saudi Arabian subsidiary, JGC Gulf International Co., Ltd. (JGC Gulf), has been awarded a contract for expansion of ethylene manufacturing facilities for the Rabigh Phase II Project. The contract was awarded by client Saudi Aramco and Sumitomo Chemical Company.

The lump-sum turnkey contract calls for the engineering, procurement, and construction (EPC) services associated with an expansion of the ethylene manufacturing facilities in Rabigh, Saudi Arabia. The expanded facilities will have a capacity of 300 thousand tons per year of ethylene, and are scheduled to be completed in 2015.

Rabigh Refining and Petrochemical Company, a joint venture between Saudi Aramco and Sumitomo Chemical, has been operating an integrated refining and petrochemicals complex (the Rabigh I Project) in Rabigh, Saudi Arabia. In parallel, Saudi Aramco and Sumitomo Chemical have been conducting a feasibility study for the Rabigh Phase II Project, to expand the original complex. The ethylene manufacturing facility that JGC Gulf will be expanding has a capacity of 1.3 million tons per year, and was constructed by JGC Yokohama and completed in 2008 as a part of the Rabigh I project. The ethylene facility makes up one of the core facilities of the complex, with a vital function as the upstream producer of base chemicals used for synthesis of many other chemical products downstream.

The Rabigh Phase II project is of vital importance to Sumitomo Chemical and Saudi Aramco, and JGC is providing project management services for the feasibility study phase of the project. Therefore, JGC is delighted to have its wholly-owned subsidiary participate in the EPC phase of the project.

Foster Wheeler AG (Nasdaq: FWLT) announced today that subsidiaries of its Global Engineering and Construction Group have been awarded an engineering and procurement contract by Sadara Chemical Company (Sadara) for a packaging center at Jubail Industrial City in the Eastern Province of the Kingdom of Saudi Arabia.

The packaging center will be part of a world-scale, fully integrated chemicals complex that is being built by Sadara, a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow). When complete, the complex – the largest ever built in a single phase – will be owned and operated by Sadara. The packaging center contract has been awarded as an extension to the front-end engineering design (FEED) contract awarded to Foster Wheeler in 2008.

The Foster Wheeler contract value for the project was not disclosed and will be included in the company’s third-quarter 2012 bookings.

The packaging center, expected to be completed in the second half of 2014, will serve as a logistics handling hub for Sadara’s chemical complex. The facility will handle packaging, storage and loading of high value-added chemical products and performance plastics for road and rail transport within the Kingdom of Saudi Arabia and for export to overseas markets.

“Foster Wheeler is honored to be awarded a contract by Sadara for the packaging center,” said Umberto della Sala, Chief Operating Officer of Foster Wheeler AG. “This award follows our successful completion of the FEED stage for the packaging center and reflects our client’s continued confidence in Foster Wheeler’s ability to execute large and technically complex projects. It further continues Foster Wheeler’s long-standing association with Saudi Aramco and Dow. This is the second major unit awarded to Foster Wheeler under its FEED contract with Sadara, the first being the propylene oxide unit which was awarded in December 2011 and is currently being executed by our Thailand office. Underpinned by our proven track record in providing world-class project execution and project management skills, Foster Wheeler is committed to bringing our global in-depth technical experience and expertise to assist Sadara in realizing its project and investment goals safely and with no compromise on quality.”