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Work has begun on the construction of a US$2.1bn industrial gas complex that will serve Saudi Aramco’s Jazan refinery and terminal
The gas plant is being developed on a build, own and operate basis by Jazan Gas Projects Company (JGPC), a joint venture between ACWA Holding and Air Products. On completion in 2018 it will supply a total of 75,000 metric tons per day (MTPD) of industrial gas, 20,000 MTPD of oxygen and 55,000 MTPD of nitrogen to the refinery for a period of 20 years.
At the groundbreaking ceremony, Mohammad Abunayyan, chairman of the JGPC board and chairman of ACWA Holding board, said, “Since the contract was awarded, we are very proud to have demonstrated outstanding infrastructure financing which has enabled us to be well advanced with the build schedule. We have also recruited a highly skilled team to manage operations and underpin our values for exceptional quality and customer service.
"Construction on-site started a month earlier than planned, initial drawings have been issued and we have a clear plan of mobilisation to Jazan from this date.”
The gas complex will consist of six air separation trains. Using Air Products technology, it will produce oxygen and nitrogen to supply the gasifier to generate the gas necessary to run the power generators and to provide feedstock to the refinery and the adjacent Jazan Economic City. This will allow the integrated gasification combined cycle (IGCC) plant to generate enough electricity to cover the refinery’s needs, enable the development of small industries, and provide power for communities in the area, according to JGPC.
Fuad Al-Azman, Jazan Area Projects general manager said, “This is the largest third party project Saudi Aramco has awarded to the private sector, and as such, demonstrates its faith in the joint capabilities of ACWA Holding and Air Products to develop giant infrastructure projects of strategic importance in the kingdom.”
The gas complex will create an estimated 100 direct local jobs when in operation, according to the company, and will be a cornerstone development in the expansion of Jazan Economic City, which is designed to stimulate manufacturing and industry in the kingdom’s southwestern region.