Economic slowdown changes market for new Jubail refinery

The economic slowdown has brought about a market change for the new refinery being built at Jubail in Saudi Arabia by Saudi Aramco and its joint venture partner Total. The refinery, which will be finished in 2012 at an estimated cost of US$12.8 billion, was built to export gasoline to the United States and middle distillates to Europe. The economic downturn in developed countries which led to a reduction in energy consumption has necessitated a strategic change in direction for the management of the refinery. Daniel Lacombe, vice president of the Jubail project, told IP Week in London that gasoline from the refinery will be consumed locally in Saudi Arabia and middle distillates will be exported to Asia. “Gasoline, we are very confident. It will be consumed locally. Most of the export from Jubail will be jet fuel and diesel. The kingdom cannot afford them. They will probably go to China and Southeast Asia, said Lacombe. The construction of the complex refinery is due to be completed by the end of 2012, and in production by the first quarter of 2013. (February 24, 2011)