Saudi Aramco Shell Refinery Co. (Sasref), a 50-50 joint venture of Saudi Aramco and Royal Dutch Shell PLC, has entered a long-term agreement to supply carbon dioxide from its 305,000-b/d refinery in Saudi Arabia’s Jubail Industrial City to International Methanol Co.’s (IMC) 970,000-tonne/year Jubail methanol plant.
Signed on July 18, the agreement for supply of CO2 for use as feedstock at IMC’s plant comes as part of a project designed to increase efficiency and improve performance at the methanol production site, said Saudi International Petrochemical Co. (Sipchem), which owns 65% interest in IMC alongside partner Japan-Arabia Methanol Co. Ltd. 35%.
Alongside enhancing efficiency and increasing competitiveness of the methanol plant, the supply agreement also reinforces Sipchem’s and Sasref’s commitments to reducing CO2 emissions, Sipchem said.
While Sipchem did not disclose details regarding either the value or precise duration of the contract, the operator did confirm IMC will begin to benefit financially from Sasref’s supply of CO2 during first-quarter 2019.
The precise volume of CO2 Sasref agreed to supply IMC under the contract also remains unavailable.
Launched in December 2016, IMC’s proposed efficiency enhancement project (EEP) aligns with Sipchem’s strategic plan to maximize integration and improve operations and profitability of its current businesses, according to Sipchem’s 2016 annual report to investors.
The EEP will require an investment of about 542.6 million riyals and is scheduled to be completed in fourth-quarter 2018.
Contact Robert Brelsford at [email protected].
