News

A new project for Aramco in Dammam with investments of one billion dollars To generate electricity and water desalination in cooperation with the Emirati Taqa and Marubeni of Japan

  • 21 October, 2021
  • 4:02 pm EEST

The Abu Dhabi National Energy Company “TAQA” and “Marubeni Corporation” “Marubeni” announced today, Thursday, the launch of a partnership to develop a new joint production project for electricity generation and water desalination in Saudi Arabia, in cooperation with Aramco.

Sources had confirmed that the alliance of the Emirati “TAQA” company and the Japanese “Marubeni” company had reached the financial closure stage of a project affiliated with Saudi Aramco.

The nearly $1 billion cogeneration project at an Aramco-owned oil complex on the Persian Gulf coast in Dammam, Saudi Arabia.

The project is scheduled to be financed through a long-term financing tranche expected to be provided by a consortium of banks led by the Saudi National Bank and Al-Rajhi Bank, in addition to Japan’s SMBC, CNBC Arabia reported.

 

Project “Tanajib”

The net production capacity of the “Tanajeeb” co-production and water desalination project in Dammam will be about 940 megawatts of electricity and 1,084 tons of steam per hour, with a total of 5.25 million gallons per day of desalinated water. The net production capacity is: 4.3 million gallons per day. According to the Emirates News Agency.

TAQA and Marubeni signed a water supply and energy transfer agreement to develop a major industrial facility and develop the necessary infrastructure, including pipelines connecting desalination plants and co-production with end users.

A special purpose company was established to work on building the plants, with “TAQA” and “Marubeni” owning 60% of its shares, while Aramco owns 40%.

Under the signed contract, TAQA and Marubeni will operate the plants for a period of 20 years under a build, own, operate and transfer scheme.

The project aims to supply electricity, steam and desalinated water to Aramco’s oil and gas facilities in the neighboring regions.

 

Emirati Energy

Farid Al-Awlaki, Executive Director of the Electricity and Water Desalination Business Unit at Abu Dhabi National Energy Company TAQA, said: “TAQA is proud to partner with Marubeni and Saudi Aramco to implement a project of such strategic importance to the Kingdom of Saudi Arabia.

He said that the “Tanajib” facility will benefit from “TAQA” expertise in efficiently implementing electricity and water projects, in addition to enhancing our capabilities in the operations and maintenance sector by owning 40% of the shares in the Operations and Maintenance Company.

He pointed out that “TAQA” had announced its firm commitment to increase its production capacity by 15 gigawatts by 2030.

The project comes as a confirmation of the progress we are making in this regard in light of expanding the scope of our current operations in the Kingdom of Saudi Arabia.

The project had been postponed over the past two years due to the consequences of the pandemic and its impact on global markets.

Reliable Trading since 2012