News 24 | Minister of Energy: We are working on the development of gas fields for the production of 630 thousand barrels per day of liquid natural gas and condensate
Prince Abdulaziz bin Salman, Minister of Energy, confirmed that the petrochemical sector is the fastest growing demand for oil globally, and this acceleration will continue to increase in the coming years by 60% by 2040.
He added, in his speech at the inauguration of the SABIC building in Jubail, under the patronage of Prince Saud bin Nayef, governor of the Eastern Province, that the system is working to develop gas fields, especially the Al-Jafurah field. For the production of more than 630,000 barrels per day of liquid natural gas and condensate.
He pointed out that the energy system intends to increase the maximum sustainable capacity of crude oil production in the Kingdom to 13 million barrels per day. This will contribute to supporting the growth of the petrochemical sector, while working to achieve the optimal use of hydrocarbon resources, through the launch of a liquid fuel displacement program, which will provide around one million barrels of oil equivalent per day by 2030.
The Minister of Energy stated that the integrated strategy for the petrochemical sector in the Kingdom is in its final stages, and it aims to convert 4 million barrels per day of crude oil and liquids into petrochemical products in local and international projects.
He revealed SABIC’s intention to launch the Kingdom’s first crude-to-petrochemical conversion project in Ras Al-Khair with a capacity of 400,000 barrels per day in collaboration with Aramco.
He pointed out that today the Kingdom is the world’s fourth largest petrochemical producer, and has all the necessary ingredients for further development of the sector in the future.
He announced that the energy system also aims for the Kingdom to be among the first in the world to apply carbon capture, utilization and storage technologies, indicating that he is working with the Royal Commission for Jubail and Yanbu and SABIC to study the establishment of a carbon capture complex and an area specializing in carbon utilization in the industrial city of Yanbu. With the aim of reducing carbon dioxide emissions and increasing its economic value.
Localization of supply chains
Prince Abdulaziz confirmed that the strategic program for the development of the petrochemical sector, which they launched two years ago, is working today through numerous partnerships to implement its goals, in the localization of supply chains, at the top of which is the partnership with large projects such as “NEOM”, ” Roshan” and “Amaala” for the use of polymer-based materials to increase the environmental and economic benefits of projects.
Reliable electrical service
And the Minister of Energy indicated that the system is working to provide electricity service with high reliability and efficiency, especially in industrial areas, revealing that it has developed an optimal energy mix for electricity generation, targeting 50% renewable energy sources, and the same amount from high-efficiency gas generating stations until 2030
He pointed out that he aims to achieve high reliability electricity service levels, especially in industrial areas, so that the service they provide becomes among the best service providers in the world by 2025; This is achieved by building new interconnections between regions, automating components of transmission and distribution networks and replacing outdated networks; In order to increase the safety, reliability and sustainability of the electricity service.
Prince Abdulaziz revealed that projects in the energy sector, in the fields of oil, gas, petrochemicals, conventional and renewable energy, have become a major contribution to the national economy, and that their target value in 2030 is estimated at 2.85 trillion riyals.
He added that this requires attracting investment to set up factories worth 260 billion riyals over the next decade. Localize 75% of the components of these projects, indicating that the system to achieve this has established various projects to localize supply chains and value chains for components of the energy sector.
The Minister of Energy stated that the targeted projects will contribute to the development of infrastructure in the industrial cities, which include Jubail, Yanbu, Ras Al-Khair and Jazan, along with the establishment of a new oil export terminal in Ras Al-Khair. In line with increasing production capacity to 13 million barrels per day, increasing storage capacity for petrochemical products in Jubail, Yanbu and Ras al-Khair, expanding the existing ports in Jubail and Yanbu and establishing a new port for the export of petrochemical products in Ras al-Khair.
An important step
For his part, the Chairman of the Board of Directors of SABIC, Eng. Khaled Al-Dabbagh, confirmed that the new building represents an important step in the company’s march towards becoming the desired global leader in the field of petrochemicals, through an effective contribution to the creation of attractive and vital areas that have economic, investment, social and tourist character.
On the other hand, Acting Chief Executive Officer, Engineer Abdul Rahman Al-Faqih, expressed his optimism that the building represents a vital starting point to increase the company’s ability to consolidate its influential presence in the petrochemical industry worldwide and continue its commitment to meet the demands of its customers and serving the communities in which it operates.
The SABIC building in Jubail is a modern model for a corporate headquarters with different possibilities, as it covers an area of 254 thousand square meters, accommodates 3.6 thousand employees, and is built entirely of the company’s steel.
The building includes a modern lecture hall that can accommodate more than 1,000 people, a mosque named after the late Ghazi Al-Qusaibi, which can accommodate 1,000 worshipers, and lectures for learning, training and discussion that can accommodate 1.5,000 people.
It also includes a sports club that provides services to male and female employees, a kindergarten for children and a central restaurant on two floors that can accommodate 1.5 thousand employees, with 45 corners for catering and drinks.
Adjacent to the building is a garden that includes a walkway for exercise, and a number of commercial facilities on the exterior facade that serve employees and the community as a whole.
The building received the LEED Gold Certificate for sustainable construction, for smart solutions in resource management and energy efficiency, because it used more than 1.5 thousand solar panels that were improved by using wind energy. This generates all the energy used for lighting the sports center and parking lot.