New Mega Projects in Saudi Arabia
- Pipeline
- Saudi Aramco News
- Industry News
Author: Aramco ExPats
Released 2 August 2006
Saudi Arabia has embarked on a number of new mega-projects in a variety of industries. The majority of them are focused on the sectors of their economy in which the Kingdom has advantages, specifically in the oil and petrochemical industries.
The total cost of projects currently under way or in advanced planning over the next several years is about SR1.06 trillion. The oil and gas industry alone, is undertaking about SR259 billion, one fourth of the total. Aramco’s project bill is about SR304 billion, but some of this is in joint venture with private companies.
Some of the mega projects that Saudi Arabia is pursuing:
- SR100 billion King Abdullah Economic City in Rabigh
- $10 billion Aramco-Sumitomo Chemical refining and petrochemical joint venture Petro-Rabigh (King Abdullah Economic City)
- SR37.5 billion Aramco-Total export refinery
- SR22.5 billion Aramco-ConocoPhillips export refinery
- Saudi Land Bridge project which will be aimed at connecting various parts of the Kingdom by rail
Meanwhile, work continues on Aramco's $20 billion Crude Oil Expansion Program, which aims at raising Saudi oil production capacity from the current 11.3 million bpd to 12.5 million bpd by 2009. The Gas Initiative has been succeeding in conjunction with the expansion. This involves exploration for gas in Aramco's joint ventures with several foreign oil and gas companies, with the intention of supplying gas for local industrial use and power generation, eventually freeing up more crude oil for export. Companies involved in the development include Shell, Total, Russia's Lukoil, China's Sinopec, and Repsol of Spain.