Saudi Aramco to promote cogeneration plants

In the first large-scale independent power project to be undertaken in Saudi Arabia by the private sector, Saudi Aramco is promoting a 2 billion riyal international investment program for the development of cogeneration facilities at four of its oil and gas facilities in the Eastern Province.

Dec. 13, 2003

By OGJ editors

HOUSTON, Dec. 12 -- In the first large-scale independent power project to be undertaken in Saudi Arabia by the private sector, Saudi Aramco is promoting a 2 billion riyal international investment program for the development of cogeneration facilities at four of its oil and gas facilities in the Eastern Province.

The plants, which would produce more than 1,000 Mw of electric power and more than 4 million lb/hr of steam, would be built by joint ventures consisting of one Saudi company and one international company under a "build, own, operate, and transfer" business model, ceding the plants to Saudi Aramco after 20 years.

Implementation is expected to begin in first half 2004, and to complete in phases during 2006. Saudi Aramco said it would supply the gas and water required to produce electricity and steam.

Saudi Aramco's president and CEO Abdallah S. Jum'ah said the program supplements the Kingdom's plans for expanding its electric grid, utilizes the company's gas supplies, and bolsters the government's efforts to attract international and local investors to help finance national economic development.