Third Party Cogeneration Projects in the Kingdom of Saudi Arabia - Entered into the Energy Conversion Agreement
Aug. 29. 2013
[Project Outline] ・Capital contribution ratio ： Marubeni Corporation 25%
Marubeni Corporation (“Marubeni”) announced today that together with JGC Corporation (“JGC”) and Saudi company Aljomaih Holding Co., (“Aljomaih”) it has signed an Energy Conversion Agreement to construct cogeneration plants for three oil and gas complexes owned by the Saudi state-owned oil company, Saudi Aramco (“Aramco”). The complexes are located in Eastern Saudi Arabia, in the Abqaiq, Hawiyah, and Ras Tanura regions. Under the contract, Marubeni and its partners will operate the cogeneration plants for 20 years, providing electric power and steam to all three complexes.
Following the finalization of the contract, Marubeni, JGC, Aljomaih, and Saudi Aramco will set up a special-purpose company in Saudi Arabia, and construct cogeneration plants inside the oil and gas complexes that will provide about 900 MW of power and around 1,500 tons of steam per hour, to fulfill the stable supply of electric power and steam on the basis of an ECA.
Currently, these three Saudi Aramco oil & gas facilities generate their own steam while purchasing electric power from the Saudi Electric Company. The more efficient cogeneration facilities are part of Saudi Aramco’s continuous efforts to enhance energy efficiency.
Marubeni is the largest overseas power producer among Japanese companies and will keep seeking to acquire and develop superior power assets. By making investments in power projects for general consumers such as electricity or transmission companies and pool markets, as well as by dealing actively with in-house power projects, such as oil-related facilities or petrochemical plants, Marubeni is contributing to a stable and effective power supply for the world.
JGC Corporation 15%
Aljomaih Holding Co., 10%
Saudi Aramco 50%
・Facility Capacity ： 900 MW (electric power), 1,500 ton/h (steam)
・Total Cost ： approx. 650 million USD
・Power Buyer ： Saudi Aramco
・Power Sales Contract Duration ： 20 years
[Outline of Participating Companies ]
・Capital contribution ratio ： Marubeni Corporation 25%
・Year Founded ：1928
・Chairman ：Keisuke Takeuchi
・Head Office ：Yokohama, Japan
・Business ：Construction for various plant and facilities.
Investment in oil and gas field development projects and utility business.
Aljomaih Holding Company
・Year Founded ：1936
・President / CEO ：Mohammed Abdulaziz Aljomaih
・Head Office ：Riyadh, Kingdom of Saudi Arabia
・Business ：Automotive sales, trading, manufacture and retail business in the Middle East.
Also involved in power generation projects in Saudi Arabia and elsewhere.
Saudi Arabian Oil Company
・Year Founded ： 1933
・President / CEO ：Khalid A. Al-Falih
・Head Office ：Dhahran, Kingdom of Saudi Arabia
・Business ：Hydrocarbons exploration, production, refining, distribution, shipping and marketing.
Exportation of crude oil and natural gas liquids.