Aramco lubricant plant expansion to cost $1bn
Saudi Aramco Lubricating Oil Refining Co (Luberef) expects the cost of expanding its Yanbu refinery to be nearly $1 billion (Dh3.67bn), an Aramco executive said.
Luberef, established in 1976, produces around 550,000 tonnes per year (tpy) of oil lubricants at its two refineries on the kingdom's Red Sea coast at Jeddah and Yanbu.
"The refinery will produce oil of type three, which is used in high-quality car engines… the project will cost around $1bn," Salih Thani, supervisor of contracts and insurance at Luberef, said.
The expansion of the Yanbu refinery, which has a capacity of 280,000 tpy of oil lubricants, would produce a new type of base oil, which Thani said is new to the region. "There are no refineries in the Gulf that produce this lubricant and there is very good demand for it in the Gulf and we could even export to Europe, India and Far East countries," Thani said.
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