Banking

TAQA and JERA Ink Pact to Develop Industrial Steam and Electricity Cogen Plant for Aramco

Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utility companies in Europe, the Middle East and Africa together with JERA Co. (JERA), Japan’s largest power generation company, on Thursday announced that they have entered into a Power and Steam Purchase Agreement with Saudi Aramco Total Refining and Petrochemical Company (SATORP), a joint venture company owned by Aramco and French multi-national energy company TotalEnergies, to develop a greenfield industrial steam and electricity cogeneration plant tol produce electricity and steam for the Amiral petrochemical complex to be developed in Jubail in Saudi Arabia.

The Amiral petrochemical complex is expected to house one of the largest mixed-load steam crackers in the Arab Gulf region.

The Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems, and gas insulated switchgear interconnections while at the same time meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre.

The project also has provision for the future installation of a carbon dioxide capture plant and is capable of hydrogen co-firing.

Special Purpose Vehicle

The Amiral cogeneration plant will be developed by a special purpose entity owned by TAQA (51%) and JERA (49%) on a 25-year build, own, and operate basis extendable by five years on mutual agreement. TAQA and JERA will also undertake the operation and maintenance of the plant through an O&M special purpose entity.

TAQA Generation CEO Farid Al Awlaqi said that the signing of the offtake agreements for the cogeneration power and steam project at the Amiral petrochemical facility, a key downstream project being developed by two of the world’s leading energy companies, demonstrates the confidence in TAQA’s ability to deliver critical utilities, including power and steam effectively. “Together with our partner JERA, TAQA is looking forward to developing an efficient cogeneration plant that reduces carbon emissions and supports SATORP with its long-term decarbonisation programme. The agreement will bolster TAQA’s efforts in building on our growth andexecuting on our 2030 goals,” he added.

JERA’s Chief Global Strategist Steven Winnsaid that the agreements for the Amiral Cogeneration Plant is a major accomplishment for all project stakeholders. Together with our partner TAQA, we will be providing stable, highly efficient, clean and reliable power and steam to SATORP.

The Amiral Cogeneration plant will not only enhance the Amiral Complex’s operational efficiency, but also demonstrates our commitment to environmental stewardship and our growth ambitions for sustainable power generation solutions in Saudi Arabia, and the region,” he added.

Amiral Project

The Amiral project involves the construction of a mixed-feed cracker capable of processing different grades of low-cost feed stocks and producing 1.65 million tons of ethylene per year. It also includes two polyethylene lines, each with a capacity of 500,000 tons per year and units for extracting butadiene and aromatics, and producing high value-added derivatives.

The project aims to convert feedstock produced directly by the SATORP refinery, such as its off-gases and naphtha, as well as ethane and light naphtha supplied by Saudi Aramco.

Ultimately, the complex will also supply a park in the Jubail industrial area, where specialty chemical plants will be located. This collaboration with companies looking to establish operations in the local area will help support the creation of key manufacturing activities, such as carbon fibers, lubricants, special fluids, detergents, additives and automotive parts.

Global Business Magazine

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