Saudi Arabia's Jubail and Yanbu industrial cities continue to grow and make a sound contribution to the national economy with many projects in a broad range of activities under construction or in the design stage.ww
According to the director-general of planning and investment at the office of the Royal Commission for Jubail and Yanbu, Mubarak A Al Mubarak, the total investment on existing industries stands at SR108.10 billion ($28.82 billion) and prospective projects would increase the gross investment to SR137.27 billion when they come on stream.
Fifty-five plants are already in operation in Jubail, the primary sector accounting for 17, the secondary sector 20 and the light sector 118. Four plants are under construction and eight are under design in the primary sector, while one is under construction, six are in the design state and one is under expansion in the secondary sector. Among light industries, 24 are under construction, 30 are in the design stage and three are expanding.
Product classifications at Jubail include petrochemicals, refined products, fertilisers and metals.
At Yanbu thee are 56 plants in operation, of which nine are in the primary sector, 11 in the secondary and 36 in the light. Two new plants have been proposed for the primary sector and there are proposals to expand three. Three units are under construction in the secondary category, four are in the design stage and 12 have been proposed. In the light category two are under construction, 11 are being designed and four have been proposed.
Major industries in Yanbu could be classified into petrochemicals, refineries, crude storage for export, NGL fractionation, minerals, lubricants, additives, liquid storage and plastics.
The primary industries under operation in Jubail are Al Jubail Fertiliser Co (Samad), Al Jubail Petrochemical Co (Kemya), Arabian Petrochemical Co (Petrokemya), Aramco Sulphur Prilling and Export, Eastern Petrochemical Co (Sharq), National Chemical Fertiliser Co (Ibn Al Baytar), National Industrial Gases Co (Gas), National Methanol Co (Ibn Sina), National Plastics Co (Ibn Hayyan), Saudi Arabian Fertiliser Co (Safco), Saudi Arabian Lubricating Oil Co (Petrolube), Saudi Aramco Shell Refinery Co (Sasref), Saudi Chevron Phillips, Saudi European Petrochemical Co (Ibn Zahr), Saudi Iron and Steel Co (Hadeed), Saudi Methanol Co (Ar-Razi) and Saudi Petrochemical Co (Sadaf).
Primary industries under expansion in Jubail are: Arabian Petrochemical Co, promoted by Sabic, production capacity HD/LLDPE 800,000 tonnes per year (tpy) and PVC 60,000tpy; Al Jubail Fertiliser Co, promoted by Sabic and Taiwan Fertiliser Co, ammonia 475,000tpy; National Chemical Fertiliser Co, promoted by Sabic and Saudi Arabian Fertiliser Co, ammonia 83,000tpy and urea 94,000tpy, and Saudi Aramco Sulphur Prilling, promoted by Saudi Aramco, sulphur 1.4 million tpy.
Plants expansions under design or active planning in Jubail are: Saudi Petrochemical Co, promoted by Sabic and Pacten Arabia, production of power; Saudi Arabian Fertiliser Co, promoted by Sabic and private parties, production capacity ammonia 585,000tpy, urea 725,000tpy; National Industrial Gases Company, promoted by Sabic and private parties, ASU 2 million tpy.
Plants under construction in Jubail are: National Petrochemical Industrialisation Co (NPIC), promoted by NPIC and Basell, production of propylene of capacity 400,000tpy and polypropylene 450,000tpy; Saudi International Petrochemical Co (SIPC), promoted by SIPC and Japanese and Arab parties, methanol, 960,000tpy, BDO, 50,000tpy, acetic acid 250,000tpy, vinyl acetate monomer 275,000tpy, ethyl acetate 50,000tpy, ammonia 350,000tpy and olefins 900,000tpy; Al Jubail United Petrochemical Co, promoted by Sabic, ethylene 1.35 million tpy EO/EG 556,000tpy, ethylene oxide 100,000tpy, linear alpha olefins 150,000tpy, VCM 550,000tpy, PVC 450,000tpy and polyethylene 400,000tpy.
Plants under design/active planning in Jubail are: Project Management and Development Co, production of amines, ethanolamines, EO and nitrogen; Saudi Industrial Investment Group, promoted by SIIG and CPCC, styrene, NAO, PP, EG, gasoline blend stock and crude butadiene; Gulf Farabi Petrochemical Co, promoted by Al Rajhi and others, N-parafin, LAB; Yusuf bin Ahmed Kanoo, promoted by Abdulaziz Kanoo and Abdullah Kanoo, propylene, hydrogen, polypropylene; Alujain, promoted by Saudi businessmen, iso-octane; Al Zamil Propane Base Complex, promoted by Al Zamil, propylene, polypropylene, acryl nitrite, acrylic acid; Al Zamil Ammonia, promoted by Al Zamil, ammonia; Al Zamil Carbon Black, promoted by Al Zamil, DEC and Al Rajhi, thermal black and furnace black.
Among the Jubail companies is Sabic affiliate Tayf, which produces industrial and commercial durable plastic products based on basic polymers and chemicals.
Industries under operation in Yanbu are Saudi Aramco Crude Oil Terminal; Saudi Aramco NGL Plant, Saudi Aramco Yanbu Refinery, Saudi Aramco Mobil Yanbu Refinery, Saudi Yanbu Petrochemical Co (Yanpet), Saudi Aramco Lubricating Oil Refining Co (Lubref II), Ibn Rushd Aromatics Plant Phase I, National Industrial Gases and Saudi Yanbu Petrochemical Co (Yanpet II)
Industries proposed at Yanbu are Olefins II, promoted by Sabic, production of polyethylene, EG and styrene; ExxonMobil, promoted by ExxonMobil, ethylene, propylene, polyethylene and EG; Samref expansion, promoted by Saudi Aramco and Mobil, propane, butane, jet fuel, diesel oil, gasoline, fuel oil and sulphur; Ibn Rushd Aromatic Plant Phase II, promoted by Sabic, xylenes and benzenes; and Saudi Aramco Domestic Refinery Expansion, promoted by Saudi Aramco, LPG, jet fuel, diesel oil, gasoline and fuel oil.
Yanbu has one of the largest ethylene plants in the world - an ExxonMobil and Sabic joint venture. It has also the only titanium dioxide (white pigment) plant in the Middle East.
The Royal Commission was established as a government entity to promote and develop the kingdom's natural and human resources.
The Royal Commission is charged with the responsibility of providing the physical infrastructure and a compatible administrative environment for existing industrial complexes and for industries to be set up in the future in the industrial cities of Jubail and Yanbu.
"The Royal Commission truly attempts to serve as a one-stop shop and interface facility for investors as they deal with the various other entities involved in establishing major industrial facilities," said Al Mubarak. The entities include the King Fahd Industrial Port, Saudi Electric Company, Aramco and the High Commission for Industrial Safety.
"The Royal Commission's chief accomplishments towards attracting investment were the creation of world-class port facilities, the construction of the world's largest seawater cooling facilities and standardising construction specifications as well as establishing environmental regulations with the co-operation of the Saudi Electricity Company (SEC) and Saline Water Conversion Corporation (SWCC) to assure a reliable supply of power and potable water," said Al Mubarak.
In Jubail currently about 73 per cent of all leased primary industrial land has been already developed by investors into 'productive land'. The remaining land is expected to be fully committed in the near future. To prepare for the second phase of Jubail Industrial Development, a new "Park West" having a total area of 5,508 hectares, including 3,256 hectares for industrial development, is now in the engineering stage and will be developed in stages. Development of community infrastructure and expansion of port facilities are also being considered. Co-ordination to transfer utility responsibilities to Marafiq is ongoing. Any support needed by Marafiq is being and will be provided by the Royal Commission.
An analysis of the contribution of Jubail and Yanbu to the Saudi economy is currently ongoing. The petrochemicals production in Jubail is now equal to approximately 7 per cent of the world's total.
Shipments of products through King Fahd Industrial Port in Jubail in 2001 were: refined products 13.98 million tonnes, liquid petrochemicals 12.76 million tonnes, fertilisers 2.28 million tonnes, sulphur 2 million tonnes and iron ore imports 4.52 million tonnes.
Shipments of products through King Fahd Industrial Port, Yanbu, in 2001 were as follows: refined products 23.07 million tonnes, liquid gas 3.06 million tonnes, petrochemicals 1.18 million tonnes and other industrial products 13,741 tonnes.
