Saudi Aramco lets contract for Jazan IGCC complex
This article was corrected Sept. 28.
Saudi Aramco, through a contractor, has let a contract to EthosEnergy Group Ltd. affiliate Shanahan Engineering Ltd., Dublin, to provide commissioning services for the integrated gasification combined-cycle (IGCC) power block project adjacent to the 400,000-b/d Jazan refinery and associated marine terminal project at Jazan Economic City, in the southwest of Saudi Arabia, along the Red Sea (OGJ Online, Nov. 20, 2017).
As part of the contract, which was awarded directly by PowerChina Nuclear Engineering Co. (formerly Shandong Electric Power Construction No. 2 Engineering Co.) of China, Shanahan will supply a commissioning management team as well as its proprietary commissioning management program to test and commission the IGCC plant, EthosEnergy said.
A value of the commissioning management services contract was not disclosed.
Designed to generate more than 2,500 Mw across five blocks using Siemens AG’s SGT6-5000F technology, the IGCC power block comes as part of Aramco’s development of the largest gasifier-based power plant in the world, which will use vacuum residue produced by the nearby Jazan refinery as well as high-sulfur fuel oil to produce power for both the refinery and the national grid.
Previously scheduled for startup in late 2016, the Jazan refinery and associated marine terminal project were slated to begin commissioning activities in mid-2018 and reach full operations by 2019, according to the latest information available on Aramco’s web site.
Jazan power JV
Earlier this year, Aramco signed a term sheet with Air Products & Chemicals Inc. and ACWA Power to form a gasification-power joint venture at Jazan Economic City, under which the JV would purchase Aramco’s gasification assets, power block, and associated utilities for more than $8 billion, according to Aug. 12 releases from the three companies.
The JV—which will take over the assets upon completion of construction and startup in 2019—will own and operate the installations under a 25-year contract for a fixed monthly fee.
Aramco will supply feedstock to the JV, which will in turn produce power, hydrogen, and other utilities for Aramco.
Air Products will hold at least 55% interest in the JV, with Aramco and ACWA Power owning the balance, the companies said.
The planned JV aligns with Saudi Arabia’s Vision 2030 as well as its increased efforts to spur development and investment under a public-private partnership model, according to Aramco.
Contact Robert Brelsford at [email protected].
