Refinery Industry Jacobs Works on Luberef Yanbu Refinery Expansion

Editor: Dominik Stephan

Refinery expansion in the Middle East: Jacobs Engineering will provide project management consulting (PMC) services for an expansion project at a Saudi Arabian lube oil refinery of Saudi Aramco.

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Jacobs will work on a refinery expansion project in Saudi Arabia.
Jacobs will work on a refinery expansion project in Saudi Arabia.
(Picture: Saudi Aramco)

Pasaden/California – "Jacobs is delighted to continue our partnership with Luberef by working on this significant project at the Yanbu Refinery. After our successful FEED efforts, we welcome the opportunity to continue to support Luberef's production of higher-grade clean fuels," stated Jacobs Group Vice President Bassim D. Shebaro. Officials did not disclose the contract value, however noted that the overall expansion project cost is estimated at approximately $1 billion. Jacobs' Leiden, Netherlands office is managing the overall project in collaboration with Jacobs’ offices in Al Khobar, Saudi Arabia and other locations.

Oil Kingdom Depends on Lube Oil Imports

Under the terms of the agreement, Jacobs is providing PMC services for both inside battery limits (ISBL) and outside battery limits (OSBL). The ISBL services include a new lube oil unit, a new sulfur complex, a new hydrogen manufacturing unit, and an expansion of the propane de-asphalting unit. The OSBL services involve all utilities, tanks and infrastructure.

The Yanbu Refinery expansion is expected to increase base oil production to meet future demands for high quality GR-II and GR-III base oils; increase the GR-I Bright stock to almost double current production; produce higher-value byproducts (naphtha, diesel, and kerosene); and satisfy the Kingdom's requirements for producing drilling fluid, which is currently being imported.

High Quality Lubricants from Yanbu Refinery

Luberef's President and CEO Hasan Jamaan Alzahrani stated, "This expansion project will add value to the Kingdom's economy including employment, and provide high quality lubricants to the markets we serve. In addition, it is part of Luberef's overall strategy to provide high quality base oil with different product slates of GR-I, GR-II, and GR-III to strengthen Luberef's position as a leading supplier." Luberef, a joint venture between Saudi Aramco and Jadwa Industrial Investment, is one of the world's leading suppliers of high quality base oil.

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