Contax Project Report: Al-Jubail Polysilicon Plant

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 GCC Context

Despite the current economic climate, the total planned GCC energy capex landscape for 2009 to 2011 continues to show promise with around US$349bn worth of investments on the table. The dominant sectors continue to include the refining and petrochemical sectors, with about $63bn and $52bn respectively already planned for award by the end of 2011.

Contax Partners’ regular analysis of the ‘Impact of the Financial Situation on GCC Energy Project Workload’ indicates that the project postponement trend seen over the past few years has resulted in a considerable amount of award and execution schedule slippages. One of the projects that is expected to help Saudi Arabia achieve its diversification goals is the First Energy Bank – Jubail Polysilicon Plant project (FEBJP).

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FEATURED COMMENT Need to be upgraded with all forthcoming info re new projects in Jubail-1; 2 and 3 + in Karan; Khursaniyah; Shedgum; Uth   1 Comments Read more comments »

First Energy Bank, a Bahrain-based Islamic investment bank whose shareholders include regionally based individuals and companies with interests in the energy sector, such as Abu Dhabi Water and Electricity Authority (ADWEA) and the Libyan Investment Authority, is planning to build the largest polysilicon plant regionally in Jubail Industrial City 2, Saudi Arabia. The project will be managed and developed by a subsidiary of First Energy Bank, Cosmos Industrial Investment Corporation and the Saudi Arabia-based industrial group, Project Management and Development Company (PMD). The project is expected to require an investment of between $1-1.2bn and produce a total output of c.7 500 tonnes per annum of high quality polysilicon product. Given the region’s drive to develop solar power as an alternative energy source, and thus reduce its consumption of oil, it is anticipated that the majority of this product will be supplied to the regional market.

The project is expected to be awarded in Q2 2010 with completion and production anticipated in Q2/Q3 2013.

The development of the FEBJP project looks to set to satisfy a number of key strategic objectives:

1. Supports the Saudi Government’s economic diversification strategy through the promotion of alternative energy related solutions.

2. Supports the Saudi Government’s industrial base expansion plans with the anticipated development of the downstream sector of the solar energy chain.

3. Enables the creation of employment opportunities within Saudi Arabia thus helping the country achieve one of its key aims, unemployment rate reduction.