Report: Saudi Aramco expects to close Jeddah refinery in several years

Saudi Aramco is considering closing its 90,000-bpd Jeddah refinery in a few years due to excessive age and environmental concerns, according to a report from news agency Reuters.

Citing industry sources, Reuters reported that Jeddah's growth has left the refinery in the middle of the city, which created environmental issues contributing to the likely decision to close it.

Aramco was actually open to closing the refinery as early as 2018, according to the report. But the company is now likely to postpone the closure to as late as 2022 because of rising domestic demand for oil products and because construction of the new Jazan refinery, also on the Red Sea coast, has been delayed.

The Jeddah refinery started operating in 1967 and servces much of Saudi Arabia's western region. The complex produces liquefied petroleum gas (LPG), gasoline, diesel, asphalt and jet fuel. It also exports naphtha.

Aramco has said it plans to bring the Jizan refinery online by 2018, but Reuters cited industry sources saying this was now expected to be delayed by at least two years, for reasons including technical problems with building infrastructure in the sea.

Saudi Arabia's new Jubail and Yanbu refineries are expected to supply ample gasoline production to replace the eventual closure of the Jeddah plant.