Middle East gets first private co-generation plant

Saudi Petrochemical Company and Shell Chemical Arabia have signed a $170 million contract to build and operate a 250MW power co-generation plant for the Jubail Energy Company.

Saudi Petrochemical Company (SADAF) and Shell Chemical Arabia have signed a $170 million contract with the Jubail Energy Company to build and operate a 250MW power co-generation plant at its site in Al-Jubail.

The plant is the first private independent power plant in the Middle East and is expected to start up in the second quarter of 2005.

The Jubail Energy Company is a 75/25 joint venture between National Power Company (NPC) and CMS Generation Company. CMS Generation Company will co-manage the construction and operation through a joint project company.

‘This is an important milestone for this region in providing a private independent power source for the first time at an industrial site,’ said Abdullah S. Nojaidi, Chairman of SADAF and Vice President (Petrochemicals) at SABIC. ‘It will equip one of our premier affiliate companies with the tools to manage its production program and help ensure SADAF’s power needs are met in the future.’

The new power plant will receive natural gas from Aramco and provide an extra 400 MW to SADAF’s operating units. It will help fulfil SADAF’s expansion of its styrene production with an additional 500,000 mt/y being added, raising total styrene capacity to one million mt/y over the next few years.