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Petrochemical Plant to be Relocated by Saudi Aramco

Middle East : 25 March 2010

A new Petrochemical plant that is earmarked to be constructed in Dammam city is now being reconsidered for the city of Jubail a statement revealed yesterday.

This venture is a joint undertaking by Saudi Aramco and a Company known as Dow and the construction of this plant is predicted to cost in the region of $20 billion or Dh 73.46billion. This amalgamation was originally planning this new industry for Ras Tanura and it is estimated that its output will be eight million tones of petrochemicals per annum.

It is reported to be the overall expense of building the project at Ras Tanura that is causing the planned change of tact. The proposed site at Ras Tanura is rather swampy and it will cost a substantial amount to reclaim it and make it suitable for the project before it can begin. It is also felt that the infrastructure here is substandard and traffic congestion will be a large problem to contend with if the petrochemical plant was to go ahead at this location.

It is also being rumored that both Ras Azzour and Jubail are being considered as possible replacement sites for this industry. When questioned about these options representatives from Dow and Aramco declined to comment on either possibility. All they revealed was  a Dow spokesperson confirmed that the project is still on track and progressing through all the normal stages and that the process is on schedule at present.

If the site is to be relocated the new planning process is likely to take a further two to three months at a minimum. Another source did state that the cost of reclaiming the land at Ras Tanura is considered very high and that there are other sites available close to this one. The site at Jubail is already an energy hub and is well located for the proposed development.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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