Page 16 - DMEA Week 46

DMEA POLICY DMEA

Houthi rebels fail in attack on

Aramco’s Jazan terminal

SAUDI ARABIA SAUDI Arabia’s Ministry of Energy said last 4mn barrels understood to have been sent there
week that an attack on the Jazan oil terminal by in late 2019 ahead of the refinery commencing
Saudi security forces Yemen’s Houthis had been thwarted days earlier. operations.
are undertood to have An unnamed ministry official said that Saudi Data from Kpler shows that Jazan shipped its
foiled the attack. security forces had foiled the attack by intercept- first cargo of 475,000 barrels of gasoil to Singa-
ing and destroying two boats filled with explo- pore in September.
sives, though a fire broke out at the terminal’s Also located within the ‘Economic City’ is
floating hoses without any casualties. the Jazan integrated gas combined-cycle (IGCC)
“Such criminal acts directed against vital plant, for which Aramco established the $8bn
facilities do not target the kingdom alone, but Jazan Power JV last year to serve the refinery.
they also target the security of oil exports, the The JV is 46% owned by Air Products, 25% by
stability of energy supplies to the world, the free- ACWA Power, 20% by Saudi Aramco and 9% by
dom of international trade, and the entire global Air Products Qudra.
economy,” the ministry said. The private partners are carrying out a
Jazan has been the source of numerous head- design-build contract awarded in 2015 covering
aches for Aramco. In the company’s annual the air separation unit and oxygen supply facility
report, which was released earlier this year, it – at capacity of 20,000 tonnes per day of oxygen
noted: “Saudi Aramco recognised an impair- and 55,000 tpd of nitrogen billed as the world’s
ment of SAR13,646mn [$3.6bn] for the year largest industrial gases complex – at the 4,000-
ended December 31, 2019 primarily related to MW plant.
the Jazan integrated petrochemical refinery The remainder of the IGCC project is being
under construction and two existing domestic executed on an EPC basis – with Italy’s Saipem,
refineries.” China’s Sepco and Spain’s Tecnicas Reunidas
Delays were caused when the decision was winning the four main packages in 2014. The
taken to move the refinery, under construction, new three-way JV will operate the gasification
to make way for new export facilities. and power assets for 25 years from completion,
Jazan will have a capacity to produce 209,900 which is scheduled next year.
barrels per day of ultra-low sulphur diesel, The attack is the latest in a string of efforts
71,400 bpd of 91 RON and 95 RON gasoline, by the Houthis to target Saudi oil facilities and
48,500 bpd of high sulphur fuel oil and 6,700 bpd follows a missile attack on Jazan in July. At that
of LPG, according to Aramco. time Houthi military spokesman Yahya Sarea
The facility is currently ramping up towards said: “With many drones our armed forces tar-
operational capacity and according to Aramco, geted military aircraft, pilot accommodation
it will begin processing 200,000 bpd of crude and Patriot systems in Khamis Mushait, and
before doubling that in 2021. other military targets at Abha, Jizan and Najran
Aside from its proximity to Yemen, Jazan is airports.”
also located far from Saudi Arabia’s oil produc- He added: “Additionally, the giant oil facility
tion hub in the Eastern province. As a result, car- in the Jazan industrial zone. The strike was accu-
goes of crude have arrived by sea, with around rate.” ™

P16 www. NEWSBASE .com Week 46 19•November•2020