Delays threaten refinery construction programme

A report in Middle East Economic Survey (MEES) newsletter has highlighted the mounting delays in the tendering process for Saudi Aramco’s three joint-venture (JV) refineries, two of which are being developed with France’s Total and ConocoPhillips, respectively.

The report, writes Global Insight energy analyst Samuel Ciszuk, has also managed to receive an official answer denying persistent rumours claiming that the Jizan refinery project


What seems more and more certain, however, is that the global cost escalations are hitting the Saudi projects with full force, causing many to question the economy behind the projects at this time and adding further uncertainties for subcontractors and suppliers. It also seems that the delays affecting the more advanced Jubail and Yanbu’ projects are now surpassing one year.

Saudi Arabia has, unlike many of its neighbours, made sure to maintain refined products export capacity over the years, with its current refining capacity standing at around 2.1 million b/d and domestic consumption averaging 1.3 million b/d.

To add value to its exports, create new domestic employment opportunities, and industrialise its economy further by building on its hydrocarbons and petrochemical experience and know-how, however, the Saudi government