Saudi Aramco announced the signing of three new Energy Conversion Agreements (ECAs) with Marubeni Corporation, JGC Corporation and Aljomaih Energy and Water Company to build and operate efficient cogeneration plants at three major oil and gas complexes in the Kingdom of Saudi Arabia.
The agreements demonstrate Saudi Aramco’s commitment to pursue energy efficiency throughout its operations, as upon completion the new cogeneration power plants will efficiently provide electricity and steam needs at the company’s Abqaiq, Hawiya and Ras Tanura facilities, said a statement.
These facilities will also serve as a benchmark for energy efficient power production and will further enhance the Kingdom’s power sector.
The cogeneration plants will generate a total of approximately 900 megawatts of power and 1,500 tons of steam per hour when they come on-stream in 2016.
Ahmad Al-Khowaiter, executive director, New Business Development, Saudi Aramco, described the contract as “a premier project, for both Saudi Aramco and the region.”
“This is one of the most important types of projects aimed at improving energy efficiency in the Kingdom,” he said. “Not only will we meet our own power needs, but will deliver efficient power with excellent technology and high efficiency in energy consumption and environmental performance,” Al-Khowaiter added.
The project’s partners will build and operate the cogeneration plants for 20 years, providing electric power and steam to all three Saudi Aramco facilities. Saudi Aramco will hold a 50% stake in the new cogeneration plants.
Cogeneration technology, relative to conventional steam and power generation, is more energy-efficient for producing power and steam because it uses less fuel, and it lowers emissions for better environmental performance.
Cogeneration technology has a thermal efficiency of more than 80% compared to conventional generation thermal efficiency of 40-50%.
Yoshiaki Yokota, general manager, Overseas Power Project Department, Marubeni, said that he hoped that the signing of the contracts would mark the, “beginning of a long-term relationship,” as the Kingdom moves into a new phase of power efficiency and resource management.
