Ethylene, propylene, MEG producing project launched
20 Mar '06
3 min read
Rabigh Unit
Crude oil shipping company Saudi Aramco's Representatives and Sumitomo Chemical today broke ground on the PETRORabigh project and signed the final project financing documents to develop a large, integrated refining and petrochemical complex in the Red Sea town of Rabigh, on the Kingdom's west coast.
In August, 2005, Saudi Aramco and Sumitomo Chemical signed an agreement to form PETRORabigh as a joint venture, following the successful completion of a joint feasibility study, during which both companies performed front-end engineering design and verified the viability of the project.
The joint feasibility study began on May 9, 2004, when Saudi Aramco and Sumitomo Chemical signed a memorandum of understanding to launch the effort. Subsequently, the joint venture was formed in September 2005.
Concurrent with the feasibility work and early engineering activities, long-lead equipment and materials were identified and procurement efforts begun. At the same time, the major engineering, procurement and construction (EPC) contracts have been signed and awarded. Work on all the EPC contracts has started, including the construction work on site for the major units.
More recently, at a signing ceremony on March 2 in London, PETRORabigh signed financing agreements with Japan Bank for International Cooperation (JBIC), Public Investment Fund of Saudi Arabia (PIF) and 17 financial institutions in respect of facilities totaling US$5.8 billion. The facilities have been raised for the Rabigh Refinery and Petrochemical Project to be developed.
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